What is a Loss?

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. This is particularly the case when the loss is derived from just the operational activities of a business.

The concept can also refer to the loss in value of an asset.