Fill in the Blank Question If revenues are greater than expenses, the company generated net income. If expenses are greater than revenues, the company generated a net ?

If expenses are greater than revenues, the company generated a net loss. This situation typically indicates that the company is spending more money to operate than it is bringing in through sales or services, which can be concerning for its sustainability. Net losses can impact a company’s ability to reinvest in itself, secure financing, or attract new investors, as it may signal underlying issues that need to be addressed. Keeping track of expenses and revenues is essential for a healthy financial outlook!