All categories

3 years ago

When a business does not generate enough revenue to cover salaries, rent, and other expenses, it incurs a _____.

Business

1 answer:

STALIN [3.7K]3 years ago

5 0

Answer:

The correct answer is: Net Loss.

Explanation:

A Net Loss or Net Operating Loss (<em>NOL</em>) occurs when the firm's expenditures are higher than its revenue. Net losses are the results of different factors such as inefficient employees, competition or unexpected market conditions (war). If a company reports net losses, it does not necessarily imply it will file for bankruptcy since there are other sources from where the company can hold like loans.

You might be interested in

The owner of a cemetery plans to offer a perpetual care service for gravesites. The owner estimates that it will cost $120 per y

Oksanka [162]

Answer:

Charge for perpetual care service will be $1500

So option (a) will be the correct option

Explanation:

We have given the estimated cost to maintain a gravesites is $120 per year

Interest rate = 8 % = 0.08

We have to find the fee which owner charged for the perpetual care service

The perpetual charge is given by

$=\frac{estimated\ cost}{rate\ of\ interest}=\frac{120}{0.08}=$1500$

Charge for perpetual care service will be $1500

So option (a) will be the correct option

4 0

3 years ago

You are tasked with designing the digital system of a car wash machine. your particular car wash is designed to perform 3 differ

strojnjashka [21]

<span>Basic : 1. Apply Soap Foam 2. Rubbing with Mitter curtain & Scrubbers 3. Rinsing Extra Cleaning Program: 1. Pre-Soaking. 2. Rubbing with Mitter curtain & Scrubbers. 3. Apply Soap Foam. 4. Rubbing with Mitter curtain & Scrubbers. 5. Rinsing Platinum Program: 1. Pre-Soaking. 2. Rubbing with Mitter curtain & Scrubbers. 3. Apply Soap Foam. 4. Rubbing with Mitter curtain & Scrubbers. 5. Rinsing. 6. Apply Wax. 7. Rubbing with Mitter curtain & Scrubbers. 8. Rinsing. 9. Dryer. 10. Repel Shield. 11. Tire Shine.</span>

8 0

3 years ago

Jennifer’s Dress Boutique custom makes wedding gowns, and requires customers to pay in advance for the work performed. When a cu

Aleks04 [339]

Answer:

A: Increase Cash $6,000 and increase Unearned Service Revenue $6,000

Explanation:

As the customer is performing the payment in advance, it will generate an obligation to the business to do the wedding gowns. This will not be a revenue; it will be liability for the business until the job is done. While the job is incomplete and undelivered, it will represent unearned service revenue.

7 0

3 years ago

g Brief Exercise 186 For the items listed below, indicate whether the item is an asset, liability, or stockholders' equity item.

morpeh [17]

Answer:

For the items listed below, indicate whether the item is an asset, liability, income statement or stockholders' equity item

1) Rent expense - Expense (Income statement)

2) Equipment - Asset

3) Account payable - Liability

4) Common stock - Stockholder's equity

5) Insurance Expense - Expense (Income statement)

6) Cash - Asset

7) Account receivable - Asset

8) Retained earnings - Stockholder's equity

9) Service revenue - Income (Income Statement)

10) Notes payable - Liability

Explanation:

Items in the financial statement can be classified as Income, Expense, Asset, Liability or Equity

5 0

4 years ago

Francis Real Estate Company has the following account balances at December 31, the end of its fiscal year. Debit Credit Commissi

34kurt

Answer:

Dr Commissions earned 84,900

Cr Income summary 84,900

Dr Income summary 55,900

Cr Wages Expense 36,000

Cr Insurance Expense 1,900

Cr Utilities Expense 8,200

Cr Depreciation Expense 9,800

Dr Income summary 29,000

Cr Retained earnings 29,000

The balance of the retained earnings account is $101,100 after all temporary accounts have been closed.

4 0

4 years ago