Final answer:
The term for a firm's finances when expenses exceed sales revenues is a budget deficit. This occurs when a company's operational costs are higher than its income, leading to potential debt accumulation or the need for financing.
Step-by-step explanation:
The term given to the finances of a firm that has expenses in excess of its sales revenues is a budget deficit. This occurs when a company's spending, which can include operating costs, raw materials, employee salaries, and other expenses, is higher than the income it generates from selling goods or services. In the context of a national budget, the annual budget deficit or surplus is the difference between the tax revenue collected and the spending over a fiscal year.
Similarly, in the financial market, an imbalance can occur if the interest rate is above the equilibrium level, leading to an excess supply of financial capital, or a surplus. However, in the case of a firm, having a budget deficit means that it is in a state where its operational costs outweigh its profits, which can lead to increased debt or the need for financing solutions to cover the shortfall.