QS Study

Revenue loss are the losses that arise from the normal course of the business. In other words, ‘net loss’ – i.e., excess of revenue expenditures over revenue receipts. Revenue loss happens when a business makes less from procedures than predictable due to external and internal factors. The loss of possible consumers, limitations on business and changes in the market can all guide to considerable revenue loss.

Revenue loss happens in the usual path of the business. It consequences due to disorganization in operating regular activities of the business. It consequences from the heavy amount of operating expenses and low amount of turnover. It is shown as debit balance on the debit side of the trading and profit and loss accounts. It negatively affects the total of capital and constancy of the business.

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