In Calculating Accounting Profit, Accountants Normally Do Not Include

question 177

Multiple Choice

In calculating accounting profit, accountants normally do not include:

• A)explicit costs of production
• B)opportunity costs that do not involve an outflow of money
• C)long-run costs
• D)sunk costs

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Definitions:

Audit Trail

A record that traces the detailed financial transactions of an entity to its original source for verification purposes.

Trade Record

Documentation or data that keeps track of all trading activities, including purchases and sales of securities.

Paper Trail

A series of documents or records that provide evidence of a person's or organization's transactions, actions, or history.

Expected Returns

The anticipated amount of profit or loss an investment is predicted to generate based on historical or projected performance.