Profit Can Be Defined as the

question 250

Multiple Choice

Profit can be defined as the

• A) difference between the sales revenue of a business firm and the opportunity cost of the resources required to produce the goods supplied by the firm.
• B) difference between a company's income and direct monetary costs of production.
• C) difference between the price of a product and the consumer's valuation of the good.
• D) amount of total revenue earned by the firm minus its payments to stockholders.

---

Definitions:

Credit Total

The sum of all credits entered into an accounting system during a specific period.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs, also known as the bottom line.

End-of-Period Spreadsheet

A financial summary prepared at the close of an accounting period, emphasizing the consolidation and reporting of financial results and activities.

Depreciation Expense

Distributing the expense of a physical asset across its lifespan, representing the reduction in its worth as time progresses.