Which of the Following Statements Is False

question 24

Multiple Choice

Which of the following statements is false?

• A)Economic costs include the opportunity costs of the resources owned by the firm.
• B)Accounting costs typically include only explicit costs.
• C)Economic profit will always be less than accounting profit if resources owned and used by the firm have any opportunity costs.
• D)Accounting profit is equal to total revenue minus implicit costs.

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Definitions:

FOB Shipping Point

A term used in shipping contracts to indicate that the buyer is responsible for the cost and risk of loss or damage once the goods are shipped by the seller.

Perpetual Inventory Method

A system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Accounts Payable-Emma Co.

The amount of money Emma Co. owes to its suppliers or creditors for items or services purchased on credit.

Debit Balance

A financial situation where the total debits exceed the total credits in an account, resulting in a positive account balance.