Which of the Following Combinations Results in a Net Loss

question 78

Multiple Choice

Which of the following combinations results in a net loss reported on the income statement?

• A)Total revenues of $80,000 and total expenses of $74,000.
• B)Total revenues of $70,000 and total expenses of $74,000.
• C)Total revenues of $60,000 and total expenses of $52,000.
• D)Total revenues of $20,000 and total expenses of $16,000.
• E)Total revenues of $40,000 and total expenses of $31,000.

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Definitions:

Bailment

The legal relationship arising when physical possession, but not ownership, of personal property is transferred from one person to another under agreement.

Storage

The action or method of storing goods or information for future use.

Simple Delivery Contract

An agreement where the seller is obligated to transfer possession of a specified good or item to the buyer upon receipt of payment.

Title Transfer

The process of legally changing ownership of property or assets from one person or entity to another.