When total expenses exceeds total revenues, a __________ results.

Question

Quizplus · Accepted Answer

When the total expenses exceed the total revenues, it means that the company has incurred a loss rather than a profit. Therefore, the correct choice is net loss, which is option B. Option A (net income) is untrue in this scenario. Option C (break-even) refers to the point where total revenues are equal to total expenses, which is not the case here. Option D (profit) is incorrect because the expenses exceeded the revenue.

When Total Expenses Exceeds Total Revenues, a __________ Results