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When does a business suffer a loss?

Answer and explanation

Correct answer: When total expenses are greater than total income

The governing accounting concept is profit and loss. A business has a loss when its total expenses or costs are greater than its total income or revenue; in symbols, loss occurs when expenses exceed income. Therefore, option C is correct. If income is greater than cost, the business earns a profit. Customer satisfaction and increased sales may be positive, but neither alone defines the financial result.

Related tags

LossExpensesIncomeIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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