A corporation's earnings are
A)the amount of revenue it receives for the sale of its products minus its costs of production as measured by its accountants minus the dividends paid out.
B)the amount of revenue it receives for the sale of its products minus its direct and indirect costs of production as measured by its economists minus the dividends paid out.
C)the amount of revenue it receives for the sale of its products minus its costs of production as measured by its accountants.
D)the amount of revenue it receives for the sale of its products minus its direct and indirect costs of production as measured by its economists.

Question

Quizplus · Accepted Answer

The earnings of a corporation are the amount of revenue it receives for the sale of its products minus its costs of production as measured by its accountants. This calculation does not include dividends paid out, which are accounted for separately. Option A includes dividends paid out in the calculation, while option B uses economists to measure costs, which is not standard practice for determining earnings. Option D is also incorrect as it implies that economists measure earnings, which is not the case.

A Corporation's Earnings Are