Accounting Profit can be defined as:
A)The ratio represented by accounting profit divided by economic profit
B)The difference between accounting profit and economic profit
C)The surplus of sales over direct costs available for distribution to the firm's five largest stakeholders
D)The surplus of revenues over costs available for distribution to the firm's owners

Question

Quizplus · Accepted Answer

Accounting profit is the surplus of revenues over costs available for distribution to the firm's owners. It is calculated by deducting all the explicit costs (such as rent, wages, and utilities) from the revenues. It does not take into account implicit costs (such as opportunity costs and time spent on the business) that are factored into economic profit.

Accounting Profit Can Be Defined As