Final answer:
The discrepancy in QuickBooks may be due to how transactions are recorded or report settings; ensuring correct entry and settings is vital. Accounting profit is calculated by subtracting explicit costs from the total revenues, amounting to $50,000 in the given example. Profit motivates firms and includes explicit and implicit costs for accounting and economic profit, respectively.
Step-by-step explanation:
The discrepancy between sales not appearing on the QuickBooks sales report but showing up on the profit and loss report may be due to how the transactions are being recorded or a potential issue with report settings or filters. It is essential to ensure that sales are properly categorized when entered and to check report settings to display the relevant data accurately. When properly addressed, it should reflect the sales data consistently across various reports within QuickBooks.
Concerning the self-check question, if a firm had sales revenue of $1 million last year and spent $600,000 on labor, $150,000 on capital, and $200,000 on materials, the firm's accounting profit would be calculated as total revenues minus explicit costs, which in this case is $1,000,000 - ($600,000 + $150,000 + $200,000) = $50,000. This illustrates the concept of accounting profit where only the explicit costs are subtracted from the total revenues.
Profits are critical for the survival of firms; they are the reward for investing money, time, effort, and resources. Accounting profit and economic profit are both measurements of profitability but take into account different types of costs. Accounting profit considers explicit costs, whereas economic profit includes both explicit and implicit costs.