Normal Profit Is a Term for

question 75

Multiple Choice

Normal profit is a term for

• A) explicit profit.
• B) the competitive rate of return.
• C) the accounting profit forgone.
• D) pure economic profit.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the U.S. to govern financial reporting and ensure consistency.

Accounting Standards

Rules and guidelines used in the preparation and presentation of financial statements to ensure accuracy, completeness, and consistency.