Accounting Profits Are Typically

question 324

Multiple Choice

Accounting profits are typically

• A)greater than economic profits because the former do not take explicit costs into account.
• B)equal to economic profits because accounting costs include all opportunity costs.
• C)smaller than economic profits because the former do not take implicit costs into account.
• D)greater than economic profits because the former do not take implicit costs into account.

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Definitions:

Reconciled Balance

The balance of an account after accounting discrepancies have been resolved and all entries have been made.

Bank Statement

A document or record provided by a bank, detailing all transactions in an account over a specific period.

Checkbook Balance

The amount of money available in an account, tracking all deposits and withdrawals recorded in the checkbook register.

Outstanding Checks

Checks that have been written and recorded in the issuer's accounting records but have not yet been cleared by the bank.