Answer:
A. Total debits exceed total credits
Explanation:
The income statement shows the revenue/income generated and expenses incurred by a business over a given period of time.
Whilst revenue/income are recognized as credit entries, expenses are recognized as debits.
Where the total expenses is higher than the total sales, the company is said to have made a loss, otherwise, a profit.
Hence a net loss is when Total debits exceed total credits.
