Question

When actual loss is less than the estimated loss, the difference between the two is considered to be _________.

• A. Abnormal gain
• B. Abnormal loss
• C. Normal loss
• D. Income

Answer 1

The correct option is A Abnormal gain

Losses can be defined as normal loss and abnormal loss. A loss which occurs normally during the process of production is called as normal loss. When actual loss is less than the estimated loss it is considered as abnormal gain.