Which statement best defines a corporation's earnings?
A) They are the amount of revenue the corporation receives for the sale of its products, minus its costs of production, as measured by its accountants, minus the dividends paid out.
B) They are the amount of revenue the corporation 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) They are the amount of revenue the corporation receives for the sale of its products, minus its costs of production, as measured by its accountants.
D) They are the amount of revenue the corporation receives for the sale of its products, minus its direct and indirect costs of production, as measured by its economists.

Question

Quizplus · Accepted Answer

Earnings are the amount of revenue a corporation earns from the sale of its products after deducting the costs of production. This is measured by the corporation's accountants and does not include dividends paid out. Therefore, option C is the best choice. Options A and B include the dividends paid out, which is not part of earnings. Option D includes economists measuring the costs of production, which is not typically done for calculating earnings.

Which Statement Best Defines a Corporation's Earnings