During 2016,Lift Ltd earned revenues of $500 and incurred expenses of $650.Retained profits at 1 January 2016 were $400,and at 31 December 2016 they were $225.
-What was the net profit or loss of Lift Ltd for the year?

Question

Quizplus · Accepted Answer

Net profit or loss is calculated by subtracting expenses from revenues. 
Net profit/loss = Revenues - Expenses 
= $500 - $650 
= -$150

Since the answer is negative, it indicates that the company has incurred a net loss. Therefore, the correct option is C) Net loss $150.

During 2016,Lift Ltd Earned Revenues of $500 and Incurred Expenses