When a Firm's Expenses Are Greater Than Its Sales Revenue

question 69

Multiple Choice

When a firm's expenses are greater than its sales revenue, the firm has a _____.

• A) profit
• B) loss
• C) negative cash flow
• D) planned economy
• E) market economy

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Definitions:

Notice of Dishonor

A formal notification that a negotiable instrument, like a check, has been refused payment.

Dishonored

Refers to the refusal or inability to pay a financial obligation when due, such as a bounced check or a default on a payment.

Notice of Dishonor

A formal notification indicating that a financial instrument, like a check or draft, has been presented for payment and refused.

Collection Bank

A financial institution involved in processing checks and payments on behalf of other banks or entities.