What figure would indicate a loss in an income statement?

A figure that indicates a loss in an income statement reflects the financial performance of a business over a certain period. When expenses exceed revenue, it means that the costs of running the business surpass the income generated from sales, resulting in a negative financial outcome. This situation is a clear indicator of a loss, as the company has not been able to cover its costs through its revenue streams.

Gross profit and net profit are measures of profitability, but they do not directly describe a loss. Gross profit is calculated by subtracting the cost of goods sold from total revenue and represents the profit before operating expenses are taken into account. Net profit is the final profit figure after all expenses, taxes, and costs have been deducted, and while a negative figure here would indeed indicate a loss, it is dependent on the preceding figures. Operating income is another measure of profitability that reflects earnings from primary business operations, also susceptible to various costs, but again does not inherently indicate a loss without the context of total revenues and costs.

Thus, the key indicator of a loss is clearly demonstrated when expenses exceed revenue, making that the right choice.