Question

If old- fashioned toys' revenues are less than its expenses during the accounting period, then the

Answer 1

The business will incur a loss

Step-by-step explanation:

In the accounting period, if the expenses incurred are more than the revenues earned so the company is suffering from loss

And, if the revenues earned are more than the expenses incurred so the company is earning profit

In mathematically

Net income = Revenues - expenses

Net loss = Expenses - revenues

In the given case, the old fashioned toys revenues are less than its expenses so the business is suffered from losses

Answer 2

If revenues are less than expenses, then the business sustains a loss. This is because there will be no cash flow remaining to for the next year’s operation, there should an allotted funds for the company to be able to sustain each and every year.