Final answer:
The net amount of operating revenues and expenses is determined by subtracting all costs, both explicit and implicit, from total revenues to find economic profit. Accounting profit is calculated without considering implicit costs, while economic profit includes implicit costs.
Step-by-step explanation:
The net amount of operating revenues and expenses refers to the profit calculated by subtracting explicit and implicit costs from total revenues. Accounting profit is calculated by taking the total revenues and subtracting only the explicit costs. For instance, if a company has total revenues of $1,000,000 and explicit costs of $600,000, $150,000, and $200,000, then the accounting profit would be $50,000. This is calculated as $1,000,000 - ($600,000 + $150,000 + $200,000).
To determine the true economic profit, both explicit costs and implicit costs must be considered. If, for example, implicit costs are $30,000, then the economic profit would be $20,000. This is found by subtracting both the explicit costs and the implicit costs from total revenues ($50,000 - $30,000).