When Would a Company Report a Net Loss on the Income

question 11

Multiple Choice

When would a company report a net loss on the income statement?

• A)When revenues are less than the sum of expenses plus dividends during an accounting period.
• B)If assets decreased during an accounting period.
• C)If liabilities increased during an accounting period.
• D)When expenses exceeded revenues for an accounting perioD.Net income or loss is equal to revenues less expenses.If expenses exceed revenues, a business would report a net loss.

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