Question

The difference between revenues and expenses when expenses exceed revenue is termed _______.

• A. Net loss
• B. Net profit
• C. Gross loss
• D. Gross profit

Answer 1

Answer: (A)

Net loss

Profit & Loss having two sides i.e. Revenue and expense. All the revenues and incomes are recorded in the credit side and all the expense and losses are recorded in the debit side of the profit & loss account. Excess of expenditure over income is termed as Net Loss.