After all expenses have been subtracted from revenues on an income statement, if the final figure is negative, it is known as which of the following?
A) owners' negative equity
B) net loss
C) negative liability
D) net liability

Question

Quizplus · Accepted Answer

When the final figure on the income statement is negative, it means that the expenses exceeded the revenues and the company has incurred a loss. Therefore, the correct term for this situation is a net loss. Owners' negative equity refers to a situation where the liabilities of the company exceed its assets, negative liability and net liability are not applicable terms.

After All Expenses Have Been Subtracted from Revenues on an Income