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net loss
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net loss

accounting
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Quick Summary

A net loss in accounting occurs when a company's total expenses exceed its total revenues over a specific period. This is typically reported on an income statement, also known as a profit and loss (P&L) statement. The income statement details all sources of income and all expenditures. If the expenses are greater than the revenues, the result is a net loss, indicating that the business spent more money than it earned. This contrasts with a net profit, where revenues surpass expenses. Tracking net income or loss is crucial for understanding a company's financial health and performance.12

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2 Britannica Sources
  1. The income statement: Money coming in and going out
  2. accounting - The income statement

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