Which of the Following Statements Is FALSE

question 400

Multiple Choice

Which of the following statements is FALSE?

• A) A correct measure of a firm's economic cost includes both accounting and opportunity cost.
• B) The accounting profit earned by a firm will always be less than its economic profit.
• C) The major difference between accounting and economic profit is that accounting profit does not reflect the opportunity cost of using resources.
• D) The accounting profit of a firm is its total revenue minus total explicit costs.

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Definitions:

Insurance

A financial product sold by insurance companies to safeguard against the risk of financial loss, covering various aspects such as health, property, and liability.

Check Register

A record of checks written, deposits made, and balances in a checking account, helping track financial transactions.

Company Deposits

The act of placing funds into a business account or the records of such transactions, often reflected in financial statements.

Delete Check

The action of removing or canceling a check entry from the accounting records, typically because of error or cancellation.