Use the Following to Answer Question

question 65

Multiple Choice

Use the following to answer question:
Figure 8.10
-(Figure 8.10) Economic profit for this firm can be calculated as:

• A) (160 - 130) × 80.
• B) (160 × 80) - 30.
• C) 80 - 30.
• D) (160 - 30) × 80.

---

Definitions:

Journal Entry

The record of a financial transaction in an accounting system whereby debits and credits are made to various accounts to maintain balance.

Petty Cash

A small amount of cash kept on hand for making immediate payments for small expenses.

Cash Over and Short

An account that records discrepancies between physical cash and recorded amounts due to errors or theft.

Journal Entry

A record of a financial transaction that includes the date of the transaction, the affected accounts, the amounts, and a brief description.