Question
What is one of the major differences between an economic P&L versus an accounting P&L The...
- What is one of the major differences between an economic P&L versus an accounting P&L
- The application of GAAP
- The treatment of Non-cash (eg depreciation, amortization, etc)
- The treatment of deferred revenue
- A and B
- B and C
Answers
Answer: Option d is correct
Accounting profit is determined by GAAP whereas economic profit is determined using economic principles. The treatment of non cash items is also different in both the cases.
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