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Is economic profit always less than accounting profit?
No economic profit is not always less than accounting profit; However, if accounting profit is less than economic profit the business would exit the industry.
What is meant by the phrase 'accounting profit'?
Profit that is made by superb accounting. By using the accounting trade, money is saved that would have been lost without it. However I am supposed to reach 150 characters.
What is the Difference entrepreneurial profit and accounting profit?
Accounting profit is simply the bottom line of a business income statement and is an absolute number, whereas an entrepreneurial profit uses the economic concept of opportunity cost. It is the profit that the entrepreneur would have earned if he or she had invested both time and money in some other enterprise.
Write not more than 3 lines explaining the different between the economic profit and accounting profit?
Accounting profits tend to be higher than economic profits as they omit certain implicit costs, such as opportunity costs.For example, if you invest $100,000 to start a business and earned $120,000 in profit, your accounting profit would be $20,000. Economic profit would add implicit costs, such as the opportunity cost of $50,000 should you have been employed instead during that period. As such, you would have an economic loss of $30,000 ($120,000 - $100,000 - $50,000).
How would you describe an accounting statement?
Accounting statements provide financial details concerning the operation of a business or other form of organization.
What is the opposite of profit when using integers?
The opposite of profit in terms of integers is loss. While profit represents a positive financial gain, loss represents a negative financial outcome. In integer terms, if profit is a positive integer, loss would be its negative counterpart. For example, if a profit is +100, the corresponding loss would be -100.
Is net profit an asset or liability?
In a way profit could be considered an asset but its a stretch. Profit is term used to describe the earnings left over after you subtract the expenses related to the earning of that profit. The retained earnings would actually be the asset. The term profit is just a way to tell if your business is making money (or profitable) and doesn't really fall into the asset category. You will not see profits on a balance sheet rather you will see earnings.
Which of these terms would describe the men in the odyssey?
motivated
Where can I find information about profit and loss statements?
If you are looking to get into either a finance or accounting field, profit and loss statements would be of critical value. Take a look at: en.wikipedia.org/wiki/Profit_and_Loss
What are the Importance of cost accounting to manufacturing?
How else would you know what costs really were and where they were incurred, and hence how to charge a price that produced a profit?
What would be the effect on the profit of an accounting period if a drawing of 100 was accounted for as an expense by mistake?
If drawings are shown as expenses then it will reduce the current year's profit while it will overstated the capital of company as well.
Is advertizing a debit or credit?
In the terms of accounting - advertising would be a debit - since you would be paying someone to advertise your business.
