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If the total of expenses is more than the income is that a profit or loss?
Wiki User
∙ 14y ago
If a company expends more money than it acquires through its business activities then the company will make a loss (negative profit and loss account)
Please note, however, that when starting up, a new company may anticipate making a loss for the first x number of years until e.g. the product becomes accepted or marketing strategies start to bear fruit.
Wiki User
∙ 14y ago
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What is statement of profit or loss?
A statement of profit and loss is the business income and expense statement which sumarises the total income and expenses coming to the total profit (or loss) of the business which is the defference between the income and expenses.
Profit and loss but why not profit or loss?
The intent of the document is to show both the income and expenses.
How do I calculate simple profit and loss?
Profit or loss = income - expenses. A positive number is profit, a negative number is loss.
When expenses are more than income is called?
Their is a LOSS of income, or loss for the business operation. You can have either a LOSS or a PROFIT or possibly break even with neither a loss or a profit.
how does income and expenses account difference from Profit and Loss Account?
Income and expense for not for profit organisations is same as profit and loss account but they cannot use the name profit and loss account because not for profit organisations are not formed to earn profit.
What is Profit or loss account?
Profit and loss is nothing but an statements which shows the net profit and net loss during a period.
What is the formula for calculating loss?
You calculate loss the same as you would do profit income minus expenses (outgoings) = profit/loss If the answer is negative then you are making a loss, if the answer is positive then you are making a profit.
Gain from disposal of fixed asset will less from cost of sales when preparing final accounts?
Yes it is income and income is deducted from expenses or expenses also shown alongwith income both have same effect on net profit or loss.
What is the difference amount of expense over income called when income exceeds expense?
Expenses more than income is called "Loss" Income over expenses called "Profit"
What is the statement of profit or loss?
Statment of profit and loss shows all revenues and expenses of specific fiscal year and how much net income or loss generated by business.
Income minus expenses is?
Loss or gain - This number is total income minus total expenses, and indicates your loss or gain. A positive number indicates that you make more than you spend and therefore are able to save money. A negative number indicates that you spend more than you make and are therefore borrowing money or deducting from your savings.
What is the relationship between income and expenses before a break-even point is reached?
Before the break even point, total expenses exceed total income and there is a loss made.
