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What is Accounting vs. Economic Profit Explained about?

Accounting income subtracts all expenses from revenues and may recognize tax losses even when economic loss occurs later, while economic profit is the present value of all cash flows minus expenses. Accounting rate of return is the ratio of after-tax profit to book investment, while economic rate of return is the ratio of after-tax economic profit to market value including changes in market value. The two measures of profit and return are correlated but not perfectly the same, and accounting profit is easie

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jimmy_chou1314

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