Determine proper classification (LO11-1) Analysis of an income statement, balance sheet, and additional information from the acc
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In 2018, Boeing paid its Washington state employees nearly $600 million in bonuses.----> both economic and accounting profits
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Anna, the owner of a local bike repair shop, uses her time to operate her business instead of earning an annual salary of $100,000 at the Ford Motor Company.----> economic profits only
<h3>What are economic profits?</h3>Generally, The difference between the income obtained from the sale of a product and the costs of the inputs utilized, in addition to any opportunity costs, determines whether an economic activity results in a profit or loss.
When determining the level of economic profit, the amount of revenue received is subtracted from both the opportunity costs and the explicit expenses.
Read more about economic profits
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