The Value Added by Any Firm Equals the Firm's ______

question 88

Multiple Choice

The value added by any firm equals the firm's ______ from selling the product minus _______.

• A) revenue; expenses
• B) revenue; the cost of inputs purchased from other firms
• C) profits; expenses
• D) profits; the cost of inputs purchased from other firms

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is used globally.

GAAP

The standard set of guidelines for financial accounting that are widely accepted in a specific jurisdiction, known as Generally Accepted Accounting Principles.

Income Statement

A financial document that shows a company's revenue and expenses over a specific period, ending with the net income or loss for that period.

GAAP

Generally Accepted Accounting Principles, a set of rules and standards for financial reporting widely accepted in the accounting profession.