Question

If Old-Fashioned Toys' revenues are less than its expenses during the accounting

period, then the
A. business will incur a loss.
B. owner's withdrawals increase owner's equity.
C. net income causes liabilities to decrease.
D. owner's withdrawals decrease net income.

Answer 1

A

Step-by-step explanation:

Business will incur a loss because in order to make a profit, revenue must be greater than expenses.