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What occurs when expenses exceed revenues for a given accounting period?
Wiki User
∙ 12y ago
Retained earnings are decreased.
Wiki User
∙ 12y ago
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What is the definition of 'Accrual Accounting'?
Accrual Accounting is a method of accounting of keeping track of revenues and expenses no matter when the exchange occurs. Revenues are money received and expenses are moneys going out of the business.
A net loss will result during a time period when?
When expenses exceed revenues a net loss occurs.
What occurs when revenue is greater than expenses?
profit
What is errors of omission in accounting?
ERROR OF OMISSION is an error which occurs as a result of an action not taken. In accounting, the error occurs when both the entries required for a transaction are completely omitted from the books.
Describe how an accurral accounting deferent fom cash accounting?
Accrual accounting records an expense/revenue in the period the transaction occurs. Cash accounting recognizes and expense/revenue when cash is exchanged.
What is the definition of 'Accrual Accounting'?
Accrual Accounting is a method of accounting of keeping track of revenues and expenses no matter when the exchange occurs. Revenues are money received and expenses are moneys going out of the business.
A net loss will result during a time period when?
When expenses exceed revenues a net loss occurs.
What is the opposite of Deficit?
The opposite of a deficit is a surplus. A deficit occurs when a country's expenses are greater than their revenues. A surplus is the opposite.
What is the difference between accured expenses and provision?
Accrued expenses are those expenses which are incurred but no amount is paid yet. Provisions are created to be adjusted against actual expenses occurs during the fiscal year and advance liability is created in balance sheet.
Does net loss occurs when expenses are less than revenue?
Net Income : When Revenue is greater than Expenses. Net loss : When Expenses are greater than Revenue. References : Basic Accounting (111) Book .
Accounting adjustments for inter company trading?
When intercompany trading occurs, accounting adjustments need to be made to ensure accurate reporting. This typically involves eliminating intercompany sales and purchases, as well as any related profits or losses. Adjustments are made to the respective entities' financial statements to show the appropriate internal transfer of assets, liabilities, revenues, and expenses. This is done to avoid double-counting or misrepresentation of the financial position and results of the entities involved in the intercompany transactions.
How do you calculate net loss?
To calculate net loss, subtract total expenses from total revenue. Net loss occurs when expenses exceed revenue, resulting in a negative value. The formula for net loss is: Net Loss = Total Revenue - Total Expenses.
What occurs when expenses are greater than revenue?
loss
What occurs when revenue is greater than expenses?
profit
What is errors of omission in accounting?
ERROR OF OMISSION is an error which occurs as a result of an action not taken. In accounting, the error occurs when both the entries required for a transaction are completely omitted from the books.
Describe how an accurral accounting deferent fom cash accounting?
Accrual accounting records an expense/revenue in the period the transaction occurs. Cash accounting recognizes and expense/revenue when cash is exchanged.
Is it true that a loss occurs when your revenue exceeds your expenses?
False, revenue is gain
