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    tigresa's Avatar
    tigresa Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 20, 2010, 09:11 AM
    A company would report a net loss when?
    When a company would report a net loss?
    A. retained earnings decreased due to paying dividends to stockholders.
    B. its assets decreased during an accounting period.
    C. its liabilities increased during an accounting period.
    D. its expenses exceeded its revenue for an accounting period.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Feb 21, 2010, 10:37 AM

    A net loss deals with operations. A net loss happens when you do not receive enough income to pay your bills. In other words you are operating in the Red!
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    Feb 22, 2010, 11:37 PM
    Quote Originally Posted by pready View Post
    A net loss happens when you do not receive enough income to pay your bills.
    That is not exactly an appropriate accounting answer to the question and will only serve to mix up the OP about recognizing revenues and expenses properly - they sometimes have a hard enough time with this concept without having incorrect ideas reinforced. You don't "receive" income, you earn it. And "bills" are not always expenses. You know better than that.

    tigresa, please see the guidelines for posting homework questions:
    https://www.askmehelpdesk.com/financ...-b-u-font.html
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