In Their Calculation of Profit, Accountants Typically Do Not Take

question 180

Multiple Choice

In their calculation of profit, accountants typically do not take into account:

• A) variable costs.
• B) fixed costs.
• C) opportunity costs.
• D) explicit costs.

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Definitions:

Liabilities

Financial obligations or debts that a company or individual owes to others.

Asset

A resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

General Ledger

A record of all financial transactions divided into accounts and usually compiled at the end of each month.

Balance Sheet

A financial statement that shows a firm’s assets, liabilities, and owner’s equity.