Question

Cougar’s Accounting Services provides low-cost tax advice and preparation to those with financial need. At the end of the current period, the company reports the following amounts: Assets = $18,200; Liabilities = $14,600; Revenues = $27,200; Expenses = $32,600.

Claculate the net loss.

Answer 1

-$5,400

Step-by-step explanation:

Given that,

Assets = $18,200

Liabilities = $14,600

Revenues = $27,200

Expenses = $32,600

The net income or net loss is determined by subtracting total expenses from total revenue. If it comes out to be a negative amount then it is a net loss and if it comes out to be a positive amount then it is a net income.

Net Loss = Total revenues - Total expenses

= $27,200 - $32,600

= -$5,400