A business incurs a________ if its costs and expenses exceed its revenues.
A)dividend
B)loss
C)liability
D)debit

Question

Quizplus · Accepted Answer

A loss is the correct option as it accurately describes a situation where a business is not generating enough revenue to cover its expenses and is, therefore, operating at a deficit. Dividend refers to a portion of profits paid to shareholders, liability refers to a legal obligation to pay debts or perform duties, and debit refers to a transaction that increases assets or decreases liabilities.

A Business Incurs A________ If Its Costs and Expenses Exceed