The table below provides the annual revenues and costs for a family-owned firm producing catered meals.
TABLE 7-1
-Refer to Table 7-1.The accounting profits for this family-owned firm are
A)-$15 000.
B)$0.
C)$10 000.
D)$30 000.
E)$500 000.

Question

The table below provides the annual revenues and costs for a family-owned firm producing catered meals.
  TABLE 7-1
-Refer to Table 7-1.The accounting profits for this family-owned firm are
A)-$15 000. 
B)$0. 
C)$10 000. 
D)$30 000. 
E)$500 000.

Quizplus · Accepted Answer

To calculate accounting profits, we need to subtract total costs from total revenues. In this case, accounting profits = $100,000 - $90,000 = $10,000. Hence, the correct answer is C.

The Table Below Provides the Annual Revenues and Costs for a Family-Owned