Practice question
For lost-profit compensation, are gross receipts necessarily identical to profit?
- No; relevant costs must be accounted for
- Yes, every sales peso is profit
- Yes, costs always disappear legally
- Yes, the word receipts means net earnings
- Yes, every business operates without expense
Legal references
- Civil Code RA386: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html Articles2199–2200,2205.
- Metro Rail Transit v Gammon Philippines GR200401 January17,2018 MAIN: https://lawphil.net/judjuris/juri2018/jan2018/gr_200401_2018.html Lost-profit proof and net profit estimate.
Answer this question in flashcards to review your response and continue practicing.