If an income and expense statement shows a net loss, what is the likely impact on net worth?

If an income and expense statement shows a net loss, it means that the expenses exceed the income for a certain period of time. This will likely have a negative impact on net worth, as the net loss will decrease the overall value of the business or individual's assets. Net worth is calculated by subtracting liabilities from assets, so a net loss will reduce the assets and therefore decrease the net worth. It is important to address the reasons for the net loss and take steps to improve profitability in order to protect and grow net worth.