Which of the Following Statements Is True About Profit

question 230

Multiple Choice

Which of the following statements is true about profit?

• A)Profit refers to the revenue received from the sale of a quantity of goods.
• B)Profit is calculated by multiplying price and quantity sold.
• C)The terms "accounting profit" and "economic profit" can be used interchangeably.
• D)Profit is the difference between revenue and cost.

---

Definitions:

Liquidated Damages

Pre-determined damages agreed upon by the parties involved in a contract, to be paid if one party breaches the contract.

Breach of Warranty

The failure to fulfill the terms of a promise or claim made about the quality or condition of a product or service.

Damages

Financial compensation that is ordered to be paid as a remedy for loss or injury.

Plaintiff

The party initiating a lawsuit, alleging harm caused by the defendant and seeking legal remedy.