ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -When costs exceed revenue, there is a negative profit, or lossThe difference between revenue and cost when the cost incurred in operating the business exceeds revenue..

Detailed explanation-2: -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: -When your sales revenue (the total amount you bring in from sales) exceeds your direct expenses (cost of goods sold), your business has made a gross profit. Gross profit is a valuable measure of whether your pricing policy, volume of sales and cost of goods sold will make your business a profit.

Detailed explanation-4: -Revenue loss occurs when a business earns less revenue than planned from operations due to external and internal variables. A significant capital loss might result from client churn, company limitations, and market shifts.

Detailed explanation-5: -If a company’s operating expenses exceed their gross profits, it will show an operating loss on the financial statements.