Which of the Following Would Explain Why Accounting Profit Might

question 53

Multiple Choice

Which of the following would explain why accounting profit might be greater than economic profit?

• A)A firm has implicit costs as well as explicit costs.
• B)A firm has only explicit costs.
• C)A firm's net income is greater than its accounting profit.
• D)A firm's net income is less than its accounting profit.

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Definitions:

Composition

The combination or arrangement of parts or elements that make up a whole, often used in the context of chemical composition or the structural makeup of an object or substance.

Forensic Science

The application of scientific methods and techniques to the investigation of crimes and legal issues.

Past Events

Refers to occurrences that have taken place before the present time, often studied in history and various scientific contexts.

States of Matter

Different forms that phases of matter take on, traditionally including solids, liquids, gases, and plasma.