Net loss occurs when______________?
Correct answer: A. Expenses are greater than Income
- A. Expenses are greater than Income
- B. Expenses are less than Income
- C. Expenses=Income
- D. Liabilities are greater than income
Explanation
A net loss results when total expenses exceed total income for the accounting period. If income exceeds expenses, the result is net profit, not loss.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Financial Statements
Financial statements present a business's financial performance and position through the income statement, statement of financial position, cash flow statement and changes in equity. Questions involve preparing and interpreting these statements, adjusting entries, depreciation, closing inventory, accrued and prepaid items, and distinguishing profit from cash flow.
Practise Financial Statements
128 free Financial Statements MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Financial Statements questions
Which of the following is the practical implementation of the accounting equation?
Depreciation decreases____________?
An increase in provision for bad debt will____________?
Which of the following can be considered as the most important phase of accounting cycle and it is the primarily objective of financial accounting?
Financial statements differ from management account because
Which of the following is the internal user of financial statements?