Net Profit Refers To

question 212

Multiple Choice

Net Profit refers to:

• A)The result of deducting liabilities from the assets of the firm.
• B)The result of subtracting cost of good sold from revenues.
• C)The result of deducting depreciation expense from revenues.
• D)The net earnings after the deduction of all expenses,including tax expense.

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Definitions:

Industry Supply

The total amount of a product or service that all producers in a market are willing and able to sell at a given price.

Price Floor

A government-imposed limit on how low a price can be charged, usually above the equilibrium price, which can prevent the market from clearing.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or resource, usually intended to protect consumers from prices deemed excessively high.

External Benefits

Benefits derived from a product or service that affect parties who did not choose to incur that benefit.