Multiple choice general knowledge

The net loss which arises in a business is an example of?

  1. Capital loss

  2. Revenue loss

  3. Both

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A net loss from regular business operations is classified as a revenue loss because it arises from revenue expenditure exceeding revenue receipts. Capital losses only occur when selling fixed assets for less than their book value.

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