The amount of revenue a firm receives for the sale of its products minus its costs of production as measured by its accountants is the firm's
A)earnings.
B)retained earnings.
C)economic,or real,profit.
D)dividend.

Question

Quizplus · Accepted Answer

Earnings refer to the amount of revenue a firm receives for the sale of its products minus its costs of production, as measured by its accountants. This term is commonly used in financial statements and reports. Retained earnings refer to the portion of earnings that a firm chooses to keep for reinvestment or other purposes. Economic or real profit, on the other hand, includes both accounting costs and opportunity costs and is a more comprehensive measure of a firm's profitability. Dividends refer to the portion of earnings that a firm pays out to its shareholders.

The Amount of Revenue a Firm Receives for the Sale