Question

Larkspur has year-end account balances of sales revenue __________.

A. Exceeding expenses
B. Less than expenses
C. Equal to expenses
D. Unrelated to expenses

Answer 1

The correct answer is B. Less than expenses. Larkspur has year-end account balances of sales revenue that are less than expenses.

Step-by-step explanation:

The correct answer is B. Less than expenses.

Larkspur has year-end account balances of sales revenue that are less than expenses.

In accounting, sales revenue refers to the income generated from the sale of goods or services.

If the sales revenue is less than the expenses, it means that the company incurred more expenses than it generated in revenue, resulting in a net loss.