Explicit Revenue Minus Explicit Measurable Costs Equals

question 45

Multiple Choice

Explicit revenue minus explicit measurable costs equals:

• A) economic profit.
• B) normal profit.
• C) accounting profit.
• D) average profit.

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Definitions:

Cash Flow

The net amount of cash being transferred into and out of a business, project, or financial product.

Required Return

The minimum annual percentage earned by an investment that will entice individuals or companies to invest their money.

Zero-Coupon Bond

A debt security that is issued at a discount and repaid at face value but does not pay interest during its life.

Investment

The allocation of resources (such as time, money, or effort) in the expectation of generating an income or profit.