One Difference Between Implicit Costs and Explicit Costs Is That

question 9

Multiple Choice

One difference between implicit costs and explicit costs is that

• A) implicit costs are included in accounting profits,whereas explicit costs are not.
• B) implicit costs are included in economic profits,whereas explicit costs are not.
• C) explicit costs are included in accounting profits,whereas implicit costs are not.
• D) explicit costs are included in economic profits,whereas implicit costs are not.
• E) explicit costs involve opportunity costs,whereas implicit costs involve a monetary transaction.

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Definitions:

Owner Control

The extent to which the owners of a business have the power to make decisions and influence the company's operations and strategic direction.

Bonds

Fixed income investments representing loans made by an investor to a borrower, typically corporate or governmental, which pay interest at predetermined intervals.

Notes Payable

A written agreement where the borrower promises to pay back a certain amount of money, under specific terms, to the lender at a future date.

Unamortized Discount

The portion of a bond's issue price that is below its face value and has not yet been amortized over the life of the bond.