A business incurs a net loss if its costs and expenses exceed its revenues.
A net loss occurs when the total expenses which includes different taxes, fees, interest, as well as depreciation exceeds the income or the revenue produced in the organization for a given period of time.
A net loss may be contrasted with a net profit which is also known as after-tax income or the net income.
A net loss occurs always when the sum total of expenses of the organization exceeds the total income or revenue generated by any business, project, investment or transaction.
Businesses would also report a net loss on the income statement, it can be shown as a negative net profit.
Many factors can lead to a net loss including low revenues, or strong competition, unsuccessful marketing campaigns, and increased cost of goods sold also.
For a business, net loss is sometimes referred to as a net operating loss (NOL).
To know more about net loss here:
https://brainly.com/question/16818334
#SPJ4
