Which of the Following Items Is Typically Not Included as a Separate

question 107

Multiple Choice

Which of the following items is typically not included as a separate item after normal revenues and expenses?

• A)Write down of inventories.
• B)Condemnation of property by the city government.
• C)Loss of use of property due to a new and unexpected environmental regulation.
• D)Loss due to an unusual and infrequent calamity.
• E)Expropriation of property by a foreign government.

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Definitions:

Economic Profits

The disparity between a company's overall income and the sum of its explicit and implicit expenses.

Accounting Profits

The net income of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues, according to standard accounting practices.

Perfectly Competitive

A market structure characterized by a large number of small firms, identical products, and free entry and exit, leading to price taking behavior.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to enter and exit the market, and no economic forces are pushing for change.