A Normal Rate of Return on Investment Is Equal to

question 229

Multiple Choice

A normal rate of return on investment is equal to

• A) accounting profit minus economic profit.
• B) the opportunity cost of capital plus any other implicit costs.
• C) accounting profit plus economic profit.
• D) total revenue plus total accounting profit

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Definitions:

Cash Sales

Transactions where payment for goods or services is made immediately in cash at the time of sale.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including materials and labor.

Merchandise

Goods or products that are bought and sold by businesses in the course of trade.

Credit Terms

Conditions under which a seller extends credit to a buyer, including payment deadlines and interest rates.