Which of the following statements is true about profit?
A)Profit refers to the revenue received from the sale of a quantity of goods.
B)Profit is calculated by multiplying price and quantity sold.
C)The terms "accounting profit" and "economic profit" can be used interchangeably.
D)Profit is the difference between revenue and cost.

Question

Quizplus · Accepted Answer

Profit is the difference between revenue and cost. Option A is incorrect as revenue refers only to the amount received from sales, not profit. Option B is incorrect as it only calculates the total revenue, not the profit. Option C is incorrect as accounting profit does not take into account opportunity costs, while economic profit does.

Which of the Following Statements Is True About Profit