Question

Give the word term or phrase which can substitute each of the following statements :

Excess of expenses over income

Answer 1

Excess of expenses over income- Loss

Explanation:
An excess of expenses over income is known as a loss to the business. Expenses are the costs that are incurred to run business smoothly and to carry out day-to-day business activities, whereas income means the profits earned during an accounting period from any source. For example, if the revenue of the business is Rs 2,00,000 and the expenses of the business are Rs 3,00,000, the loss to the business is Rs 1,00,000 (2,00,000$-$3, 00,000).