When Would a Company Report a Net Loss on the Income

question 11

Multiple Choice

When would a company report a net loss on the income statement?

• A)When revenues are less than the sum of expenses plus dividends during an accounting period.
• B)If assets decreased during an accounting period.
• C)If liabilities increased during an accounting period.
• D)When expenses exceeded revenues for an accounting perioD.Net income or loss is equal to revenues less expenses.If expenses exceed revenues, a business would report a net loss.

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Definitions:

Exaggerated

A description for something that is represented as greater than is actually the case.

Optometrist

A healthcare professional specialized in examining the eyes for vision defects, diagnosing eye diseases, and prescribing corrective lenses or eye exercises.

Color Blindness

An inability or decreased ability to see color, or perceive color differences, under normal lighting conditions.

Squint

A condition where the eyes do not look in exactly the same direction at the same time, often referred to as strabismus.