Which of the Following Is True

question 41

Multiple Choice

Which of the following is true?

• A) Accounting profits = Revenues − Implicit costs − Explicit costs
• B) Economic profits = Revenues − Explicit costs
• C) Accounting profits = Revenues − Implicit costs
• D) Economic profits = Accounting profits − Implicit costs

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Definitions:

Right To Smoke

This term does not refer to a universally acknowledged legal right but may pertain to specific regulations or allowances within designated areas where smoking is permitted.

Proper Consideration

The legal requirement for contracts, entailing something of value being exchanged between parties.

Consideration

Something of value promised to another when making a contract that compels them to enter into the agreement; an essential element in the formation of a legally binding contract.

Promise

A declaration or assurance that one will do something or that a particular thing will happen, often forming the basis of a contract.