MANAGEMENT

Detailed explanation-1: -If expenses are less than revenue, the business will suffer a loss. Budgeting is much easier for a new business than for a well-established business. Records of accounts identify all purchases and sales made using credit. There is no point in comparing your financial statements with those of another company.

Detailed explanation-2: -A net loss occurs when a company’s expenses are higher than its total revenue. This can be a sign of problems that need to be addressed. It can, however, also happen because a company has a (relatively) short-term need for more income than it earns.

Detailed explanation-3: -If the revenue is greater than expenses, a net profit is earned and if the revenue is less than expenses, a net loss is incurred.

Detailed explanation-4: -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-5: -When income is less than expenses, you have a budget deficit.-too little cash to provide for your wants or needs. A budget deficit is not sustainable; it is not financially viable.