​If a Firm Is Earning Negative Accounting Profits,it Implies

question 14

Multiple Choice

​If a firm is earning negative accounting profits,it implies

• A)​That the firm's economic profits are necessarily zero
• B)That the firm's economic profits are necessarily positive
• C)That the firm's economic profits are necessarily negative
• D)​Accounting profits alone cannot determine economic profits

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Definitions:

Interest Payable

The amount of interest expense that has been incurred but not yet paid by a company during a specific period.