Question

When revenue is less than spending, what are we experiencing?

1) Profit
2) Loss
3) Break-even
4) None of the above

Answer 1

When revenue is less than spending, we are experiencing a Loss.

Step-by-step explanation:

When revenue is less than spending, we are experiencing a Loss. In this scenario, the expenses exceed the income generated, resulting in a negative financial outcome for the business. This could indicate that the business is not generating enough sales or that its costs are too high.