When Expenses Exceed Revenues, Which of the Following Is true

question 81

Multiple Choice

When expenses exceed revenues, which of the following is true?

• A)a net loss results
• B)a net income results
• C)assets equal liabilities
• D)assets are increased

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Definitions:

Private Cost

The costs directly incurred by those producing or consuming a good or service, excluding externalities or indirect costs.

Raise Capital

The process by which firms obtain funding to finance their operations, growth, or investments, often through issuing debt or selling equity.

Economic Flow

The movement of resources, goods, services, and money among households, businesses, and the government in an economy.

Large-scale Privatization

The process of transferring ownership of large government enterprises to private entities.