As a General Rule,when Accountants Calculate Profit They Account for Explicit

question 43

Multiple Choice

As a general rule,when accountants calculate profit they account for explicit costs.What do they usually ignore

• A)certain outlays of money by the firm
• B)implicit costs
• C)operating costs
• D)fixed costs

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Definitions:

Earnings Before

A financial metric that typically specifies a certain earnings figure before deductions are made, such as Earnings Before Interest and Taxes (EBIT).

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in a net profit or loss.

Financing Charges

Interest or other fees charged by a lender on the principal amount loaned, affecting the total cost of a loan.

Par Value

The face value of a bond or stock, as specified by the issuing company, which does not necessarily match the market value.