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Any business venture is considered "in the red" when its costs exceed its revenue in a fiscal year.
Traditionally, accountants have used red ink to record negative numbers such as debt or loss on spreadsheets.
Conversely, positive entries are recorded in black ink. When a company turns a profit, it is "in the black."
The term "in the red" first appeared in print in the 1926 book "Wise-Crack Dictionary" by Bruce Grant and George H. Maines.
Sometimes the phrase refers to a business that continues to operate without making a profit. Most businesses can only sustain operations in the red for a limited time before reorganization or bankruptcy.
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