Ethics Involves Making Moral Decisions and Choosing Between Right and Wrong

question 46

True/False

Ethics involves making moral decisions and choosing between right and wrong.

Identify how to account for various types of revenue in NFP organizations.

Comprehend the accounting treatment for restricted funds and endowments.

Know the differences in accounting treatments for capital and operational contributions.

Understand the accounting for volunteer services and donated assets.

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Definitions:

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs.

Accounting Profit

The total revenue of a business minus the explicit costs of operating the business.

Implicit Costs

The opportunity costs associated with a company's use of resources that are not directly paid for or billed.

Implicit Cost

The opportunity costs that are not directly paid or incurred but represent the loss of alternative benefits when resources are used in a particular way.