Select the one best response. 1. One difference between a loss and an expense is: a. An expense is from an everyday business activity. b. A loss decreases net income. An expense shows on the income statement. d. An increase to a loss shows as a debit. C. 2. Net income: a. Will cause a decrease in Retained Earnings at the end of the year b. Is the same amount as Cash Flows from Operating Activities c. Is all you need to know about a company's profitability d. For most companies, is computed with the accrual basis