Which of the Following Best Defines a Corporation's Earnings

question 90

Multiple Choice

Which of the following best defines a corporation's earnings?

• A)They are the amount of revenue the corporation receives for the sale of its products, minus its costs of production, as measured by its accountants, minus the dividends paid out.
• B)They are the amount of revenue the corporation receives for the sale of its products, minus its direct and indirect costs of production, as measured by its economists, minus the dividends paid out.
• C)They are the amount of revenue the corporation receives for the sale of its products, minus its costs of production, as measured by its accountants.
• D)They are the amount of revenue it receives for the sale of its products, minus its direct and indirect costs of production, as measured by its economists.

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Definitions:

Capital Contributions

The value of assets contributed to a company by its owners or shareholders.

Beginning Capital Balance

The amount of capital recorded in a company's accounts at the start of a financial period.

Personal Use

The employment of an asset or resource for individual rather than business or commercial purposes.

Division of Income

The method by which a company's profit is distributed among its various stakeholders, including shareholders, employees, and sometimes the government in the form of taxes.