The Profit Equation Is

question 108

Multiple Choice

The profit equation is:

• A)(Unit price × Q)- (Unit variable costs × Q)- Total fixed costs = Profit
• B)(Unit price × Q)- (Unit variable costs × Q)+ Total fixed costs = Profit
• C)(Unit price - Unit variable costs - Total fixed costs)× Q = Profit
• D)(Unit price × Q)+ (Unit variable costs × Q)+ Total fixed costs = Profit

---

Definitions:

Short-term Creditor

A creditor that provides loans or credit to a business or individual with an expectation of repayment within a short period, typically less than a year.

Liquidity

The ability of an asset to be quickly converted into cash without losing its value.

Basic Earnings Per Share

A financial indicator that measures the net income generated per outstanding stock share.