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

Question

Quizplus · Accepted Answer

A loss is incurred when a business generates less revenue than the cost and expenses it incurs. A liability is an obligation a business owes to others, such as debts or loans. Debit refers to a transaction that increases assets or decreases liabilities and equity. Dividend is a distribution of earnings to shareholders, which is only possible if the business generated profits.

A Business Incurs a ________ If Its Costs and Expenses