Accounting Profits Can Never Be ____________ Economic Profits

question 9

Multiple Choice

Accounting profits can never be ____________ economic profits.

• A)larger than
• B)smaller than
• C)equal to

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Definitions:

Payments of Interest

The act of paying the interest charge on a loan or debt, typically made at regular intervals over the lifetime of the loan.

Payments for Income Tax

Financial outlays made by individuals or corporations to government entities in accordance with taxable income or profits.

Unearned Rental Revenue

Income received from tenant payments before the rental period has occurred, recorded as a liability until earned through the passage of time.

Rent Revenue

Income generated from leasing out property or equipment to another party.