Identify Which of the Following Increases Earnings & Profits

question 103

Multiple Choice

Identify which of the following increases Earnings & Profits.

• A)a capital contribution
• B)life insurance proceeds payable to the spouse
• C)tax-exempt interest income
• D)All of the above increase E&P of a corporation.

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Definitions:

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, resulting in surplus gain.

Product Variety

The diversity of different items a firm, industry, or economy produces, providing consumers with multiple options to satisfy their preferences.

Graph Drawing

The process of representing data visually using plots and charts to make the information easier to understand.

Consumer Surplus

The difference between the total amount consumers are willing and able to pay for a good or service and the total amount they actually pay.