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A firm's revenues come to 90,000 and its expenses to 96,000. The firm has recorded a net:
AGain of 6,000
BLoss of 9,600
CGain of 9,600
DLoss of 6,000
Answer & Solution
Correct answer: D. Loss of 6,000
1. Expenses outflowing more than revenues inflowing gives a loss.
2. 96,000 minus 90,000 leaves a shortfall of 6,000.
3. The firm has a net loss of 6,000.
_Source: OpenStax Principles of Financial Accounting, Chapter 2, Introduction to Financial Statements._
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