Which of the Following Would Be Considered an Implicit Cost

question 193

Multiple Choice

Which of the following would be considered an implicit cost of operating a business?

• A)advertising expenses
• B)wages paid to workers
• C)a normal rate of return for investors
• D)any explicit cost

---

Definitions:

Stockholders' Equity

The residual interest in the assets of a company after deducting its liabilities, representing ownership interest in a corporation.

Total Assets

The sum of all assets owned by an entity, including both current and non-current assets.

Note Payable

A financial liability representing a written promise to pay a specified sum of money to another party on a determined future date or on demand.

Accounting Equation

The foundational principle of double-entry bookkeeping, stating that Assets = Liabilities + Equity, reflecting a company's financial position.