Tag Archives: #BudgetStruggle

What happens when liabilities exceed assets?

What happens when liabilities exceed assets When a company’s liabilities exceed its assets, it is known as a negative net worth or insolvency. This means that the company’s debts are greater than the total value of its assets. For more information to visit https://www.mca.gov.in In such a situation, the company may face serious financial difficulties… Read More »

What is it called when your expenses are greater than your revenues on an income statement?

Expenses Exceeding Revenues Income Statement An income statement, also called a profit and loss statement, summarizes a company’s revenues, expenses, and profits for a given period. It is one of the core financial statements used to assess the profitability and operational efficiency of a business. Here’s a basic structure of an income statement: Revenues (or… Read More »

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