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It is sometimes called a net operating loss nol.
Income statement example net loss. Unlike the balance sheet the income statement calculates net income or loss over a range of time. Loss or net profit is usually recorded at the bottom of an income statement. A net loss is when expenses exceed the income or total revenue produced for a given period of time. Still it goes without saying that the purpose of a business is to turn profits eventually.
Explanation of net loss. A business can survive despite incurring net losses by relying on revenues earned during an earlier period or with the help of loans. The payroll wages are accrued at the end. This is why many people call net loss the bottom line.
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