Question

What are phantom profits?

Answer 1

The amount of phantom or illusoryprofit is the difference between theprofit reported using historical cost—as required by generally accepted accounting principles (GAAP)and theprofit that would have been reported if replacement cost had been used.

Answer 2

Answer:

The amount of phantom or illusoryprofit is the difference between theprofit reported using historical cost—as required by generally accepted accounting principles (GAAP)and theprofit that would have been reported if replacement cost had been used.

Explanation: