ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Revenue is greater than expenses
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Revenue is less than expenses
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Revenue is equal to expenses
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Expenses is greater than revenue
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Detailed explanation-1: -If the company’s revenue is greater than its expenses, it will have a profit. On the other hand, if a company’s expenses are greater than its revenue, it’s operating at a loss.
Detailed explanation-2: -Net Income Definition When expenses exceed revenues, the company has a net loss. Report it on a company’s income statement. Net income is an important measure of a company’s profitability and financial performance for the relevant fiscal period. Also, call it net earnings, net profit, or the bottom line.
Detailed explanation-3: -If your expenses are more than your income, the difference is a net loss. You usually can deduct your loss from gross income on page 1 of Form 1040 or 1040-SR. But in some situations your loss is limited. See Publication 334, Tax Guide for Small Business (For Individuals Who Use Schedule C) for more information.
Detailed explanation-4: -The income statement lists a company’s revenues and expenses. When revenue is higher than expenses, the result of revenue minus expenses is called net income or profit. When expenses are higher than revenue, the result of revenue minus expenses is called net loss or loss.