Residual Income Is Similar to the ________ Notion of Profit

question 109

Multiple Choice

Residual income is similar to the ________ notion of profit as being the amount left over after all costs, including the cost of the capital employed in the division, are subtracted.

• A) accountant's
• B) manager's
• C) shareholder's
• D) economist's

---

Definitions:

Adjustments

Entries made in journal accounts at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.