As a General Rule, When Accountants Calculate Profit They Account

question 80

Multiple Choice

As a general rule, when accountants calculate profit they account for explicit costs but miss:

• A)sunk costs
• B)goodwill costs
• C)operating costs
• D)implicit costs

---

Definitions:

National Debt

The cumulative sum of funds a nation's government owes due to borrowing, which remains unpaid.

GDP

Gross Domestic Product, a measure of the economic performance of a country, calculated by adding the total value of all goods and services produced within its borders.

National Debt

The sum total of finances that a nation's government has amassed in debt via various avenues.

Deficit

An economic condition where expenditures exceed revenue, common in government budgets.