Economic Costs Include Implicit Costs but Not Explicit Costs

question 49

True/False

Economic costs include implicit costs but not explicit costs.

---

Definitions:

Liability-revenue Relationship

A financial concept that examines the connection between a company's incurred liabilities and the revenue generated over a certain period.

Deferred Revenue

Revenue recorded by a corporation for products or services that have not yet been provided or executed, classified as an obligation.

Accrued Revenue

Income earned but not yet received or recorded at the end of the accounting period.

Shareholders' Equity

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