_________Is an Example of an Implicit Cost

question 13

Multiple Choice

_________is an example of an implicit cost.

• A)A salary paid to an employee
• B)The wear and tear on a firm's machinery
• C)A firm's electric bill
• D)The cost to transport a firm's goods

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, presented in a structured manner.

Current Ratio

A measurement indicating how well a business can cover its short-term debts with its available assets, made by dividing current assets by current liabilities.

Financial Statements

Official records that outline the financial activities and condition of a business, individual, or other entity.

Average Collection Period

The mean number of days a company waits to get payments from customers for products or services provided on credit.