Adding Value Means

question 7

Multiple Choice

Adding value means

• A)to make products that have positive prices.
• B)that the value of a firms output is greater than the value of the output that was not produced by the inputs the firm employs.
• C)that the firm has a positive economic profit.
• D)that economic profit is zero.

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Definitions:

Prepaid Expense

Payments made in advance for goods or services to be received in the future, recorded as assets on the balance sheet.

Services Provided

The activities or functions performed by a business or organization for the benefit of its customers, which do not result in the ownership of a physical product.

Biweekly Salaries

Payments made to employees every two weeks, totaling 26 pay periods in a year.

Fiscal Period

A specific time frame used for financial reporting and budgeting, often synonymous with a fiscal year, but can refer to any defined accounting period.