Question

A corporation's earnings are the amount of revenue it receives for the sale of its products

A. minus its cost of production as measured by its accountants. Earnings must be paid out as dividends. Practice
B. minus its direct and indirect cost as measure by its economists. Earnings may be paid out as dividends or retained by the corporation.
C. minus its cost of production as measured by its accountants. Earnings may be paid out as dividends or retained by the corporation.
D. minus its direct and indirect costs as measured by its economists. Earnings must be paid out as dividends.

Answer 1

Answer: A. minus its cost of production as measured by its accountants. Earnings must be paid out as dividends. Practice

Step-by-step explanation:

A corporate earning or profit is the total amount of money left after a corporation has catered for all its expenses, any income acquired by a corporation within the reporting periods as a result of goods sold or services rendered is called TOP LINE REVENUE.

Corporate earning is a statistical report by the Bureau of Economics Analysis done quarterly to determine the net earnings of any corporation operating under the National Income Product Account (NIPA).

Measures of calculating corporate earning includes:

• Book profits.

• After tax profit.

• Current production profit.

Answer 2

C) Minus its cost of production as measured by its accountants. Earnings may be paid out as dividends or retained by the corporation.

Step-by-step explanation:

A corporations earnings take in to account all the accounting costs. These costs are direct and indirect costs related to the operation and are collected by the accountants. The economists revision of costs generally also include opportunity costs which are usually not included as a part of earnings.

The corporation also has the choice to pay the earnings as dividends or retain the profit for future investment and operations.

Hope that helps.