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.

---

Definitions:

Constant Dollar

A term used in economics to describe a monetary value that has been adjusted for inflation, thereby facilitating comparison of purchasing power over different periods.

Interest Expense

The cost incurred by an entity for borrowed funds, often reported on the income statement as a non-operating expense.

Unamortized Premium

The portion of the bond premium that has not yet been amortized (expensed) over the life of the bond.

Bonds Payable

Long-term liabilities representing the amount owed by an entity to bondholders.