Profit Is Defined as

question 581

Multiple Choice

Profit is defined as

• A)net revenue minus depreciation.
• B)total revenue minus total cost.
• C)average revenue minus average total cost.
• D)marginal revenue minus marginal cost.

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Definitions:

Impairment Tested

Impairment testing is the process of evaluating assets to determine if their carrying value exceeds the recoverable amount, indicating a need for impairment charges.

Amortized

The process of gradually writing off the initial cost of an asset over a period according to a fixed plan.

Impairment Loss

The amount by which the carrying value of an asset exceeds its recoverable amount.

Assets

Resources owned or controlled by a business from which future economic benefits are expected.