Which of the Following Could Not Be Used to Calculate

question 1

Multiple Choice

Which of the following could not be used to calculate a firm's total profit?

• A) Total revenue minus total cost
• B) Average profit per unit times quantity sold
• C) (Price minus average total cost) times quantity sold
• D) Marginal profit times quantity sold

---

Definitions:

Fair Value

What would be pocketed from an asset sale or the price to offload a liability during a methodical engagement with market individuals on the day of measurement.

Present Obligation

A duty or responsibility to act or perform in a certain way.

Goodwill

The intangible asset that arises when a buyer acquires an existing business but pays more than the fair market value of the net assets.

AASB 3

is the Australian Accounting Standards Board's standard on Business Combinations, detailing the accounting treatment for merging businesses, including the recognition and measurement of assets, liabilities, and any non-controlling interest.