QUESTION IMAGE
Question
question when a company’s expenses are greater than its revenues, the company typically experiences ________. answer a liability neither a profit nor a loss a loss a profit i dont know yet submit
In business (specifically in accounting/finance), profit is calculated as revenues minus expenses ($\text{Profit} = \text{Revenues} - \text{Expenses}$). If expenses exceed revenues ($\text{Expenses} > \text{Revenues}$), then $\text{Profit}$ will be negative, which means the company incurs a loss. A liability is a debt/obligation, not related to this profit - loss calculation. "Neither a profit nor a loss" would be when revenues equal expenses. "A profit" is when revenues exceed expenses. So the correct option is "a loss".
Snap & solve any problem in the app
Get step-by-step solutions on Sovi AI
Photo-based solutions with guided steps
Explore more problems and detailed explanations
C. a loss (assuming the third option is labeled C; if options are unlabeled by letter, the option with "a loss" text)