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Akimi4 [234]
2 years ago
9

Distinguish between economic and accounting profit

Business
2 answers:
Masja [62]2 years ago
8 0

Answer:

The main difference between accounting and economic Profit is that accounting profit refers to monetary revenue minus monetary costs which includes any type of cost in the organization in the form of rents, salaries, material costs etc. Economic profit refers to the monetary revenue minus total cost.

Explanation:

maksim [4K]2 years ago
5 0

The differences between economic and accounting profits exist in their definitions, despite their similarities.

<h3>What is economic profit?</h3>

Economic profit has the following characteristics:

  • It includes both explicit and implicit costs.
  • It is determined by economic principles, especially the economic concept of opportunity cost.
  • In summary, economic profit is the total revenue minus both implicit (opportunity cost) and explicit costs.

<h3>What is accounting profit?</h3>

Accounting profit has the following characteristics:

  • It includes only explicit costs.
  • It is determined by accounting principles (U.S. GAAP or IFRS).
  • It is equal to net income or revenue minus explicit expenses.

Thus, there are differences between accounting and economic profits.

Learn more about economic and accounting profit at brainly.com/question/25742185

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Answer:

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Explanation:

First, we need to accommodate the information:

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3 years ago
Roberta transfers property with a tax basis of $495 and a fair market value of $546 to a corporation in exchange for stock with
Volgvan

Answer: $546

Explanation:

The amount realized by Roberta in the exchange will be gotten through the addition of the fair value of the stock that was acquired to the liability that's assumed by the corporation. This will be:

Fair value of stock acquired = $356

Add: Liability assumed by corporation = $190

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Accumulated Balance is given by :

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Explanation:

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