Business Expenses Greater Than Revenue

What is it called when your expenses are greater than your revenues on an income statement.

Business expenses greater than revenue. The answer is d revenues expensesa business reports profits when revenues are greater than expenses revenue is money or income that is generated as a result of business activities simply by the sale of any product or service of the company. Accounting financial accounting accounting and finance. A net loss results when the expenses are greater than revenues.

Revenue describes income earned through the provision of a business s primary goods or services. Question 24 3 out of 3 points if the total of expenses is greater than the total of revenue in the income statement the business has a net loss. If a company spends more than it earns it does not make a profit.

Questions world business world accounting general accounting knowledge. Expense is the cost that is incurred to produce or deliver a service to the customers. I bought asset like laptop phone and tablet this year for this business.

Assets are greater than liabilities. My business income this year is around 6 000 reported in 1099 misc. A company can make a profit even if its income is decreasing as long as its earnings continue to exceed its expenses.

A surplus is the opposite. As a result my business expenses is around 6 500. The opposite of a deficit is a surplus.

When a business incurs more expenses than revenue. Instead it suffers a loss. When revenue is greater than expenses you have a.