The Total Benefit of an Activity Minus Its Total Cost

question 225

Multiple Choice

The total benefit of an activity minus its total cost is:

• A) net benefit.
• B) marginal benefit.
• C) marginal cost.
• D) utility.

---

Definitions:

Cash Received

The actual receipt of cash from transactions, including sales, investments, financing, and other business activities.

Discount on Bonds Payable

The discrepancy between what a bond is actually worth and the lower price it is sold for.

Bonds Payable

A long-term debt instrument issued by corporations or governments, indicating the amount owed to bondholders, including the terms of interest payments and the maturity date.

Discount on Bonds Payable

The difference between the face value of bonds and their selling price, when the bonds are sold for less than their face value.