ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The term overspending is also used for investment projects when payments exceed actual calculated cost.

Detailed explanation-2: -A net loss occurs when the sum total of expenses exceeds the total income or revenue generated by a business, project, transaction, or investment. Businesses would report a net loss on the income statement, effectively as a negative net profit.

Detailed explanation-3: -It might be time for you to find ways to reduce your spending. It’s hard to save any money if you are overspending. And spending more than you earn is an easy way to accumulate debt. You must repay the loan, with interest, by a set date.

Detailed explanation-4: -A net loss occurs when total expenses are higher than total revenue. This is the opposite of net profit and is usually recorded at the bottom line of the income statement. A loss can also refer to a cost that doesn’t relate to normal business operations.