If the Revenue of a Period Exceeds the Expenses,the Excess

question 67

True/False

If the revenue of a period exceeds the expenses,the excess represents a net loss.

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Definitions:

Direct Labor Costs

Expenses associated with the wages and benefits of employees who directly work on the production of goods.

Cash Account

An account that tracks the amount of cash available to a business or individual.

Raw Materials Inventory

The total cost of all the materials kept in stock that have not yet been used in manufacturing.

Net Operating Income

The total profit of a company after operating expenses are subtracted from operating revenues but before deducting taxes and interest.