Excess of expenses over income is a _____________ .

Income

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Surplus

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Loss

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Expenses

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Solution

The correct option is B Loss
A loss is an excess of expenses over revenues, either for a single business transaction or in reference to the sum of all transaction for an accounting period. The presence of a loss for an accounting period is closely watched by investors and creditors since it can signal a decline in the creditworthiness of a business.

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Similar questions

Q. A debit balance in the income and expenditure account denotes excess of _________ over _____________.

Objective type Questions
Classify the following accounts under the types of personal, Real and Nominal account.

1) Life insurance premium A/c
2) Mr. Kulkarnis’s Capital A/c
3) Goods A/c
4) Freight A/c
5) Wages A/c
6) Goodwill A/c
7) Copyright A/c
8) Outstanding income A/c
9) Bank charges A/c
10) Outstanding expenses A/c
11) Sundry income A/c
12) Income receivable A/c
13) Export duty A/c
14) Furniture A/c
15) Import duty A/c
16) Free sample distribution A/c
17) Sundry expenses A/c
18) Discount A/c
19) Drawings A/c
20) Fixed deposit A/c
21) Profit on sale of furniture A/c
22) Office equipment A/c
23) Bank of India A/c
24) Machinery A/c
25) Carriage Outward A/c
26) Loss on sale of machinery A/c
27) Loan A/c
28) Deposits with MSEB
29) Loss by fine A/c
30) Legal expenses A/c

Q. If expense on rent as a percentage of income of F is 12.5%, then the other expenses as a percentage of his savings is___

Q. The monthly income and expenses for a business are 1,00,000 Rs and 50,000 Rs respectively. This is a case of .

The monthly income and expenses for a business are 1,00,000 Rupees and 50,000 Rupees respectively. This is a case of ___.

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