If an entity suffered a $2,000 loss for the month, which of the following statements is most likely true?
A)The company's cash decreased $2,000.
B)The company's shareholders need to invest $2,000.
C)The costs incurred during the month exceeded the benefits.
D)Not all of the revenues were collected during the month.

Question

Quizplus · Accepted Answer

A loss indicates that the costs (expenses) exceeded the revenues (benefits) during the month, not necessarily that cash decreased by that amount, shareholders need to invest more, or that revenues weren't collected.

If an Entity Suffered a $2,000 Loss for the Month