Accounting Profits Are Calculated Based Upon

question 120

Multiple Choice

Accounting profits are calculated based upon:

• A) explicit cash receipts and implicit expenditures of cash.
• B) actual cash receipts and actual expenditures of cash.
• C) implicit cash receipts and actual expenditures of cash.
• D) opportunity costs plus explicit costs.

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Definitions:

Donee Beneficiary

A third party who benefits from a contract wherein the promisor agrees to give a gift or confer a benefit directly to the donee beneficiary.

Promisee

The individual or party to whom a promise or commitment is made within the context of a contract.

Promisor

An individual or entity that makes a promise or agreement to perform a particular action in a contract.

Delegatee

An individual or party to whom duties or authority have been delegated by another, known as the delegator.