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  2. A loss occurs anytime a business sells an asset for less than the amount the business spent to obtain this asset. An operating loss occurs when the revenue derived from selling your business’ products is less than the expenses incurred to make them. These expenses include depreciation, the cost of the raw materials to make the goods, and labor.
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    What is a loss in accounting?A loss is an excess of expenses over revenues, either for a single business transaction or in reference to the sum of all transactions for an accounting period. The presence of a loss for an accounting period is closely watched by investors and creditors, since it can signal a decline in the creditworthiness of a business.
    What is net loss in accounting?What is Net Loss? Net loss is an accounting term, and it refers to a negative value for income. In other words, a company incurs a net loss when the expenses for a specific period are higher than the revenues for the same period.
    What is Profit & Loss Accounting?Profit and loss (P&L) accounting is the process of creating a profit and loss statement to help companies have a clear view of the revenues and expenses over a period. The segregated view of the financial inflows and outflows enables organizations to track their financial performance and implement ways to keep up the same or improve it.
    What is an example of a loss in accounting?Or, a company might sell old inventory at a loss to get tax in and reduce its tax liability. There are many other examples of losses in accounting that help businesses reduce their taxes, including accelerating depreciation on an asset.
     
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