In the Red

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🗓️ Idiom: In the Red (adj)

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💬 Meaning

• To be operating at a financial loss; to owe more money than one has.
• This idiom is commonly used to describe individuals, businesses, or accounts that are in debt.

🧠 Example Sentences

• The company has been in the red for three consecutive quarters.
• After all the expenses, their bank account was deep in the red.
• If we don’t cut costs soon, we’ll be in the red by the end of the year.

🏛️ Origin

The phrase comes from traditional accounting practices, where losses were written in red ink and profits in black ink. Being “in the red” meant the books showed a negative balance. This colour-based system is still reflected in financial reporting today.

📝 Practice Exercises

1. Fill in the blank:

Due to poor sales, the small business ended the year __________.

Answer

in the red

2. Choose the correct meaning of “in the red”:

A) To be making a profit
B) To be in financial debt
C) To cancel a contract

Answer

B) To be in financial debt

3. Rewrite the sentence using the idiom:

“Our expenses are higher than our revenue this month.” → Change the sentence using: in the red

Answer

We are in the red this month.

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ℹ️ Other Useful Pages

👉 Finance and Accounting Idioms
👉 Business English Idioms List
👉 Student Space
👉 Tutor Toolkit

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