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Profit & Capital Allocation Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. Which of the following would NOT be included in accounting profit?

Question 2 2. Accounting profit is closely related to or often the same as which of the following?

Question 3 3. Accounting profit can include several different types of expenses in its calculation, depending on which of the following?

Question 4 4. Accounting profit is calculated as:

Question 5 5. If a company made $200,000 in sales in one year and paid $120,000 in total expenses and taxes, what would the accounting profit be?

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Question 6 6.

Before starting her business, Judith used to work as a salesperson in a flower shop and earned an annual salary of $30,000.

In the first year of its operation, her business produced a total revenue of $70,000. The various payments made by the business amounted to $35,000. Calculate the economic profit of Judith's business in its first year.

Question 7 7. Which is calculated in economic profit and NOT included while calculating accounting profit?

Question 8 8. Which of the following is the formula to calculate economic profit?

Question 9 9. Which of the following is NOT an explicit cost of a business?

Question 10 10. Which of the following regarding accounting and economic profits of a single business is true?

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Question 11 11. Who provides capital to a company?

Question 12 12. Why is capital important to firms?

Question 13 13. Which of the following describes a stock?

Question 14 14. Which of the following describes a bond?

Question 15 15. Which of the following is an example of crowdfunding?

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Question 16 16. Bryan is a retailer and sells diaries. In 2016, he bought and sold 2000 diaries at $6 and $10 respectively. His other expenses amounted to $100/month. Calculate the profit that Bryan made during 2016.

Question 17 17. At which sales level does profit maximization occur?

Question 18 18. What is profit maximization?

Question 19 19. How does marginal revenue appear on a graph?

Question 20 20. How is MR different from MC?

Profit & Capital Allocation Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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