Asked by
ziyanda madikane
on Nov 25, 2024Verified
Accounting profits equal total revenue minus
A) total explicit costs.
B) total implicit costs.
C) total economic costs.
D) economic profits.
Accounting Profits
The total revenues of a business minus the explicit costs, essentially the net income on the financial statements.
Total Revenue
The total income received by a firm from its sales of goods or services, calculated as the quantity sold multiplied by the selling price.
- Identify the differences between profits as understood in accounting versus those derived from economic analysis.
Verified Answer
TC
Learning Objectives
- Identify the differences between profits as understood in accounting versus those derived from economic analysis.