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Negative income of any sort means more money is leaving than is entering in the measured range. Net income is 'in total' so it means reserves are decreasing (expenditure) rather than increasing (income)

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16y ago

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Related Questions

Can Net income on an income statement be negative?

Yes net income on income statement can be negative and that amount is called net loss for that specific period or fiscal year.


Why is your Net Income on bottom line Profit and Loss statement is negative?

Net income is negative which means that either company has earn less revenue or have incurred more expenses then revenue earned.


Can a profit margin ratio be negative?

A profit margin can be negative if the company had a negative net income. For eample if the company had $100,000 in net sales, but their net income was ($10,000) then (10,000)/100,000 = (10%) or negative 10%.


Can cash flow from operation be positive if net income is negative?

Yes, cash flow can be positive while net income is negative.


Why is Net Income on bottom line of Profit and Loss statement negative?

Negative net income means that business has spend more and earn less in other words it is said that business has incurred more cost to earn less revenue in a fiscal year.


How can we determine the net income (loss) for the period?

To determine the net income (loss) for a period, subtract total expenses from total revenue. If the result is positive, it is net income. If the result is negative, it is a net loss.


How to find the net income loss for a business?

To find the net income or loss for a business, subtract total expenses from total revenue. If the result is positive, it's net income; if negative, it's a net loss.


How can one determine the net income loss of a business?

To determine the net income loss of a business, subtract the total expenses from the total revenue. If the result is negative, it indicates a net income loss.


What is best definition of net income?

"Net income" simply means income minus expenses.


What does net monthly income mean?

net monthly income means all deduction are been taking out


If net income is zero do you have a loss in your business?

Net Income zero means firm has at no profit no loss position and it does not means loss to company.


What does negative retained earnings mean?

the net income after paying out dividends was a loss

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