Economic Cost Differs from Accounting Cost in That

question 27

Multiple Choice

Economic cost differs from accounting cost in that:

• A)the former includes implicit costs, while the latter does not.
• B)the latter counts true depreciation, while the former uses arbitrary rules.
• C)the former is used to calculate both economic and accounting profit.
• D)the latter includes depreciation, while the former does not.

Understand the reporting requirements for publicly traded companies, including Form 10-K and 10-Q.

Distinguish between current and noncurrent assets and understand their presentation in financial statements.

Identify the external users of accounting information and their reliance on financial reports for decision making.

Understand the concept and calculation of financial ratios and their importance in financial analysis.

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Definitions:

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