Revenue Less Than Expenses

If all expenses cost are deducted then the answer will be net income.

Revenue less than expenses. It is when revenues are less than expenses. Revenue less expenses would equal profit if the number is positive loss if the number is negative. If revenues are greater than expenses the company has net income and common stock increases. If revenues are less than expenses the company has a net loss and retained earnings decreases.

A revenue deficit occurs when realized net income is less than the projected net income. What is the us deficit. If revenues are greater than expenses the company has net income and retained earnings decreases. Ebit less interest expense interest expense interest expense arises out of a company that finances through debt or capital leases.

The amount by which actual revenues were less than the budgeted revenues. The budget variance is favorable when the actual revenue is higher than the budget or when the actual expense is less than the budget. If it is total revenue less expenses then it is net profit loss. The amount by which actual expenses were greater than the budgeted expenses.

Several financial ratios and metrics take account of revenues and expenses such as the frequently used ebitda metric which is earnings before interest taxes depreciation and amortization. Definition of negative variances on accounting reports. Option no 1 will be the answer. Upvote 1 downvote 0 reply 0 answer added by muhammad usman zubair manager accounts projects bahria town construction wing phase 8 5 years ago.

If expenses are more than. In its simplest form profit is revenue less expenses. Negative variances are the unfavorable differences between two amounts such as. Ebit is also sometimes referred to as operating income and is called this because it s found by deducting all operating expenses production and non production costs from sales revenue.

If revenues are less than expenses the company has a net loss and common stock increases to balance off the loss. This happens when the actual amount of revenue and or the actual amount of expenditures do not correspond. A budget variance is the difference between the budgeted or baseline amount of expense or revenue and the actual amount. Revenue expenses income.

For one level down.