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A loss.
What else can I help you with?
When total cost exceeds total revenues a business has registered?
A loss.
When total revenues exceed total expenses what is the difference called?
Net income
How do you calculate government's operating surplus or deficit?
To calculate a government's operating surplus or deficit, subtract total government expenditures from total government revenues. If revenues exceed expenditures, the result is an operating surplus; if expenditures exceed revenues, it results in a deficit. This calculation typically includes only current operating revenues and expenses, excluding capital expenditures and revenues. The formula can be expressed as: Operating Surplus/Deficit = Total Revenues - Total Expenditures.
What is firms and profit?
Firms are business entities that produce goods or services to generate revenue. Profit is the financial gain that occurs when a firm's total revenues exceed its total costs, reflecting the efficiency and success of its operations. Essentially, profit serves as a key indicator of a firm's performance and viability in the market. It can be reinvested in the business, distributed to shareholders, or used to fund expansion.
What conditions exist for a company to break even?
When total costs and total revenues are equal, the business organization is said to be breaking even.
What percentage of retail gross sales should go to rent?
Depends on the business but for most small business your total occupancy cost should never exceed 10% of total sales.
Are sales and revenues the same?
No, sales and revenues are not the same, though they are related concepts. Sales typically refer to the total amount of goods or services sold by a company, often measured in units or dollars. Revenues, on the other hand, encompass the total income generated from all business activities, including sales, investments, and other sources. Therefore, while sales contribute to revenues, revenues can include additional income streams beyond just sales.
When smithston enterprises had total revenues of 35 million while it?
When smithston enterprises had total revenues of 35 million while it?
Which financial statement will determine if a business is profitable?
The income statement, also known as the profit and loss statement, determines if a business is profitable. It summarizes revenues, expenses, and profits or losses over a specific period, allowing stakeholders to assess the company's financial performance. By comparing total revenues to total expenses, the income statement provides a clear picture of profitability.
What do you call when total revenues equal total costs?
Breakeven.
What is the formula for accounting profits?
The formula for accounting profits is: Accounting Profit = Total Revenues - Total Explicit Costs Total revenues include all income generated from sales, while total explicit costs encompass all direct expenses related to the business, such as wages, rent, and materials. This calculation does not account for implicit costs, which are opportunity costs associated with the resources used.
What does P and L consist of?
The Profit and Loss statement (P&L) mainly consists of revenues, expenses, and resulting net income or loss for a specific period. Revenues represent the income generated from selling goods or services, while expenses include costs incurred to generate that revenue. The net income is the difference between total revenues and total expenses, indicating the profitability of the business for that period.
