When expenses exceed revenues,the resulting change in equity is:
A)Net assets.
B)Negative equity.
C)Net loss.
D)Net income.
E)A liability.

Question

Quizplus · Accepted Answer

When expenses exceed revenues, the resulting change in equity is a net loss. This means that the company has lost more money than it has earned in that period, resulting in a decrease in equity. None of the other options accurately describe this situation.

When Expenses Exceed Revenues,the Resulting Change in Equity Is