Net loss occurs when
Net loss occurs 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 happens when total expenses of a business exceed its income. For example if revenue is 100000 and expenses are 120000 then net loss is 20000. Loss reduces owner equity and shows poor performance. Businesses aim to minimize losses through cost control revenue growth and efficient operations. Repeated net losses threaten survival of firms.