A net loss occurs when
A)expenses are greater than revenues
B)liabilities are greater than assets
C)cash inflow is less than cash outflow
D)the ending cash balance is lower than the beginning cash balance

Question

Quizplus · Accepted Answer

A net loss occurs when the expenses (costs of running the business) exceed the revenues (income generated by the business). This means that the business is operating at a loss and may need to adjust its operations or find ways to increase revenue in order to become profitable.

A Net Loss Occurs When