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ID: 2538554 • Letter: H

Question

https://keiseruniversity.blackboard.com/webapps/assessment/take/launch.jsp?course-assessment : Week 4 Final Exa.., x View Favorites Tools --psidstudies.adu.dcn.... Help https--ecf.flmb.circ11 (3) https-ecf.flmb.circ11 (2) https--ecf.flm stion 13 Which of the following combinations results in a net loss reported on the income stateme O Total revenues of $20,000 and total expenses of $16,000 O Total revenues of $70,000 and total expenses of $74,000. O Total revenues of $40,000 and total expenses of $31,000. O Total revenues of $60,000 and total expenses of $52,000. O Total revenues of $80.000 and total expenses of $74,000 estion 14 n y its clients in an accour

Explanation / Answer

ANSWER

The correct option is Option B i.e. Total revenue of $70,000 and Total expense of $74,000.

Net Loss arises when total revenue is less than the total expenses which occured during the period.

In this situation Total revenue is less than the total expense, therefore, net loss of $4,000 ($74,000 - $70,000) would reported in the income statement.