Ask Question
BusinessBusiness
16 December, 05:15

The divergence between accounting profit and economic profit is likely to be: Group of answer choices Greater for highly leveraged firms than for equity-financed firms Greater for labor-intensive firms than for capital-intensive firms Greater for capital-intensive firms than for labor-intensive firms Greater for technology-based firms than firms in mature industries

+3
Answers (1)
  1. 16 December, 05:57
    0
    The correct answer to the following question will be Option C (For capital-intensive firms bigger than those for labor-intensive firms).

    Explanation:

    The main distinction between accounting income and economic benefit is that income statement applies to gains reported in accounting records which have been measured by subtracting from either the earnings all of the actual expenses accrued relating to marginal costs. Economic benefit revenue measured taking into account all overt and indirect costs where even the tacit cost corresponds to the potential expense of the agency's capital.

    The other choices have no relation with the specified scenario. And the answer to the above seems to be the right one.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The divergence between accounting profit and economic profit is likely to be: Group of answer choices Greater for highly leveraged firms ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
A flower shop makes a large sale for $1,000 on November 30. The customer is sent a statement on December 5 and a check is received on December 10. Th flower shop follows GAAP ad applies the revenue recognition principle.
Answers (1)
The Federal Deposit Insurance Corporation insures deposits up to $250,000 per person per financial institution. Suzanne has $200,000 in an individual account and $424,000 in a joint account with her husband, Ted.
Answers (1)
5. The price for predictability is often A. long-term boredom. B. stress and insecurity. C. long hours. D. increased self-confidence.
Answers (1)
For a tax system in which higher income earners pay a larger share of their incomes in taxes, a higher inflation rate
Answers (1)
The statement of cash flows explains changes in a firm's: A) Cash on hand and cash in the bank B) Cash and cash equivalents C) Cash, cash equivalents, and accounts receivable D) Working capital
Answers (1)
New Questions in Business
You want to create a slide that lists the pros and cons of using cloud storage as part of your presentation on business technology. Which pre-set layout would you want to use? A. Content with caption B. Title only C.
Answers (2)
Two or more products are produced using limited resources. The firm would like to determine how many units of each product it should produce to maximize overall profit given its limited resources.
Answers (1)
1. Calculate owners' equity. Doughnut Company shows $130,000 worth of assets on its December 31, 2009, balance sheet. If total liabilities are $55,800, what is the amount of owners' equity?
Answers (1)
The term "constant returns to scale" describes a situation where expanding all inputs does not change the average cost of production. a larger-scale firm can produce at a lower cost than a smaller-scale firm.
Answers (1)
When you visit a campus, you should plan to do all of the following except. A. stay the night in a dorm. B. meet with a professor. C. sit in on a class lecture. D. attend a college party.
Answers (2)
Home » Business » The divergence between accounting profit and economic profit is likely to be: Group of answer choices Greater for highly leveraged firms than for equity-financed firms Greater for labor-intensive firms than for capital-intensive firms Greater for
Sign Up Forgot Password?