Net loss arises when
Net loss arises when
A: Expenses are greater than income
B: Expenses are less than income
C: Liabilities are greater than income
D: None of these
Net loss occurs when total expenses of a business exceed its income. For example if revenue is 50000 and expenses are 60000 the net loss is 10000. Net loss reduces equity and signals financial problems. Businesses must control costs or increase sales to avoid repeated losses.