Portugal, Inc Portugal, Inc

question 45

Multiple Choice

Portugal, Inc. has the following amounts related to its activities for the year ended December 31, 2015: $$\begin{array} { l l } \text { Sales to customers } & \$ 6,250,000 \\\text { Gain on sale of equipment } & \$ 450,000 \\\text { Gain on sale of investments } & \$ 950,000 \\\text { Loss on sale of land } & \$ 300,000\end{array}$$ Portugal, Inc. uses IFRS for its external financial reporting. How much revenue should Portugal, Inc. report on its income statement for the year ended December 31, 2015?

• A) $6,250,000
• B) $7,200,000
• C) $7,650,000
• D) $7,350,000

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Definitions:

Least-Cost Combination

The least-cost combination is an economic principle that refers to the mix of factors of production that minimizes costs for a given level of output.

Resources

Inputs used in the production of goods and services, such as labor, capital, land, and entrepreneurship.

Output

The total amount of goods or services produced by a company, industry, or economy over a specific period of time.

Least-Cost Combination

is an economic principle where firms aim to produce a given output at the minimum possible cost by choosing the optimal combination of inputs.