The Value of Income Received by a Firm in Return

question 13

Multiple Choice

The value of income received by a firm in return for supplying goods and services is called

• A) economic rent.
• B) revenue.
• C) accounting profit.
• D) economic profit.
• E) normal profit.

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to update revenue and expense accounts and ensure that the financial statements reflect the accurate financial situation.

Financial Statements

Documents that provide an overview of the financial health of a corporation, including details on assets, liabilities, income, and cash flow, rephrased for a second entry.

Adjusted Trial Balance

A listing of all company accounts that will appear on the financial statements after adjustments are made for journal entries, ensuring the total debits equal total credits.

Financial Statements

Written records that convey the business activities and the financial performance of a company, including the balance sheet, income statement, and cash flow statement.