In which situation does loss occur?
Answer and explanation
Correct answer: When expenses are more than income
Loss occurs when the total relevant expenses of a business exceed its income or revenue during the period being considered. The difference represents a negative result. If income is greater than expenses, there is profit instead. Customer satisfaction or the fact that goods are being sold does not by itself determine profit or loss; the amounts of income and expenses must be compared.
Frequently asked questions
What is the correct answer to this question?
When expenses are more than income
Why is this the correct answer?
Loss occurs when the total relevant expenses of a business exceed its income or revenue during the period being considered. The difference represents a negative result. If income is greater than expenses, there is profit instead. Customer satisfaction or the fact that goods are being sold does not by itself determine profit or loss; the amounts of income and expenses must be compared.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Business Risk.
