If you know that Alberta Dreams Corporation, a travel equipment and clothing company, has revenues of $30 million and accounting costs of $10 million, you know that its earnings are $20 million.

Question

Quizplus · Accepted Answer

Earnings are calculated by subtracting accounting costs from revenues. Therefore, $30 million in revenues minus $10 million in accounting costs equals $20 million in earnings.

If You Know That Alberta Dreams Corporation, a Travel Equipment