Net loss, expense or liability?

Neither.

It is a decrease to retained earnings.

That would be a liability. A liability is money that you owe to another company.

Edit: Didn't realize CaptainForest was the accounting expert, I'm just going with what I read, maybe I read it differently.

Thank you!

Either the question was changed or I read another question and then posted the answer here.

But I could have sworn the question was what does a net loss decrease…an asset or liability.

Which is why I answered the way I did.

But as the question reads now, the answer is clearly a liability.

Upon further reflection and analysis…I think I might have just severally misread the question.