Last year, Carmela’s florist shop had higher expenses than revenues. W

QUESTION

Last year, Carmela’s florist shop had higher expenses than revenues. Which of the following must be true?

A) Carmela is operating a nonprofit organization.
B) The florist shop posted a profit for last year.
C) The florist shop posted a loss for last year.
D) Carmela needs to raise the prices for her goods.
E) Carmela’s employees earned no salary last year.

ANSWER

Answer: C
Explanation: C) With expenses for the business running higher than revenues, the shop posted a loss.