A business budget outlines the projected income (revenue) and projected expenses for a specific period.

Question

ScanSolve AI Tutor · Accepted Answer

To calculate a business's net income or loss using a business budget:

A business budget outlines the projected income (revenue) and projected expenses for a specific period.
To determine net income or loss, you would compare the total projected income from the budget to the total projected expenses from the budget.
If the total projected income is greater than the total projected expenses, the business anticipates a net income (profit).
If total projected expenses exceed total projected income, the business anticipates a net loss.

The formula is:
$\text{Net Income/Loss} = \text{Total Projected Income} - \text{Total Projected Expenses}$

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