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 »
Expenses exceeding revenues Definition Website link Expenses exceeding revenues: When expenses exceed revenues on an income statement, it is commonly referred to as a “net loss” or “operating loss.” This situation arises when a business or individual incurs more expenses than the income generated from its operations or other sources. In simpler terms, it means that… Read More »
Negative retained earnings Negative retained earnings on the balance sheet means that a company has accumulated losses over time, which have exceeded the profits earned. This can happen when a company has consistently experienced losses over several periods or when it has paid out more dividends than its earnings. It can be a cause for… Read More »