Payments to the Owners of Firms Are Included in Aggregate

question 148

Multiple Choice

Payments to the owners of firms are included in aggregate accounting as:

• A)profits.
• B)rents.
• C)employee compensation.
• D)interest.

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Definitions:

Obligation

A duty or commitment one party has to perform or refrain from performing specified actions as per a contract or legal requirement.

Novation

The act of replacing an existing obligation with a new one, transferring rights and duties from the original party to a new party.

Substitute

A replacement or alternative for someone or something.

Contract

A binding contract between multiple parties that is supported by legal enforcement.