
Explanation:
An issuer's income statement distinguishes between its financial income (or net income) after fixed obligations have been met and its 'economic' profit, which is the return to a firm's owners in excess of what they could have earned elsewhere on different investments. This excess return is known as their required rate of return on equity. Therefore, option C is correct as it accurately describes 'economic' profit.
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"Economic" profit is best described as the return to a firm's owners:
A
In the form of retained earnings and distributions to the owners.
B
After corporate taxes and taxes on distributions have been paid.
C
In excess of what they could have earned elsewhere on different investments.