MANAGEMENT

BUISENESS MANAGEMENT

MERCHANDISING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What do you call the result of operation when the total expenses is greater than the revenue?
A
Net Profit
B
Net Loss
C
Net Book Value
D
Net purchases
Explanation: 

Detailed explanation-1: -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-2: -When expenses exceed revenues, the company has a net loss. Report it on a company’s income statement.

Detailed explanation-3: -If the result is positive, the revenue is more than expenses, making a profit. Conversely, if the number is negative, the company makes a loss because its expenses are more than total revenue.

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.

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