What is the difference between accounting profit and economic profit?
What will be an ideal response?
Profit is the difference between revenue and cost. Accounting profit excludes the cost of some economic resources that the firm does not pay for explicitly. Economic profit includes the opportunity cost of all resources used by the firm.
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The primary purpose of the statement of cash flows is to provide information
A. about a company's investing and financing activities during an accounting period. B. regarding a company's financial position at the end of an accounting period. C. about a company's cash receipts and cash payments during an accounting period. D. regarding the results of operations for a period of time.
Since World War II, the share of total income going to the bottom 20 percent of U.S. households has
A) fallen by 20 percent. B) increased by 10 percent. C) remained constant. D) more than doubled.