A Net Loss

question 31

Multiple Choice

A net loss

• A)occurs if operating expenses exceed cost of goods sold.
• B)is not closed to Retained Earnings if it would result in a debit balance.
• C)is closed to Retained Earnings even if it would result in a debit balance.
• D)is closed to the Paid-in Capital account of the stockholders' equity section of the balance sheet.

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Definitions:

Reduction-In-Force (RIF)

A company strategy involving the decrease of its workforce due to budget cuts, restructuring, or other economic reasons, often leading to layoffs.

Cost-Savings Practice

Actions or strategies implemented by an organization or individuals to reduce expenses and save money without compromising quality or performance.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

World Trade Organization (WTO)

An international organization that regulates and facilitates global trade agreements between nations to ensure trade flows smoothly, predictably, and freely.