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If the expenses are greater than income then the company has run at a loss which can be considered normal in the first year or two. A company that has been operating for two or more years might need to look at its marketing plans and see if the product can be bought by them cheaper or if their mark up is high enough. GST payments are made based on GST collected compared to GST paid out so this company would get GST refunds. However i.the rpoblem is not solvable the company may go into liquidation because they will not be able to pay their creditors
What else can I help you with?
Net income will result during a time period when?
revenues exceed expenses.
When total revenues exceed total expenses what is the difference called?
Net income
What occurs when expenses exceed revenues for a given accounting period?
Retained earnings are decreased.
What does a business if its cost and expenses exceeds its revenues?
When a business's costs and expenses exceed its revenues, it incurs a financial loss. This situation can lead to unsustainable operations if it persists, prompting the business to reassess its pricing strategy, reduce expenses, or find ways to increase sales. If not addressed, ongoing losses may result in cash flow problems and ultimately threaten the viability of the business. In extreme cases, it may lead to insolvency or bankruptcy.
What is a business makes a profit when its costs of production are less than its what?
A business makes a profit when its costs of production are less than its revenues. Revenues are generated from sales of goods or services, and when these exceed the expenses incurred in producing them, the business earns a profit. Essentially, profitability occurs when income surpasses costs.
When total revenues exceed total cost a business has registered?
A loss.
A net loss will result during a time period when?
When expenses exceed revenues a net loss occurs.
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 PROFIT AND LOSS STAND IN BUSINESS?
Profit and loss in business refer to the financial performance of a company over a specific period. Profit is the positive difference between revenue and expenses, indicating a company's ability to generate income. Conversely, a loss occurs when expenses exceed revenues, signaling financial struggles. Understanding profit and loss is crucial for business decision-making, as it impacts cash flow, strategy, and overall viability.
What is it called When tax revenues exceed expenditures?
Budget Surplus
Does deficit occur when expenditures exceed revenues?
yes it exceeds.
When revenues exceed expenditures, _____.?
there is a budget surplus
