Which of the Following Statements Regarding Accounting and Economic Profits

question 371

Multiple Choice

Which of the following statements regarding accounting and economic profits is FALSE?

• A) Economic profits can be zero even if accounting profits are positive.
• B) Economic profits = total revenue - (explicit + implicit costs)
• C) Accounting profits can be negative if economic profits are positive.
• D) Accounting profits = total revenue - explicit costs

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Definitions:

Breathing

The process of taking air into and expelling it from the lungs to facilitate gas exchange with the internal environment, mainly by bringing in oxygen and flushing out carbon dioxide.

Cerebral Spinal Fluid

A clear, colorless body fluid found in the brain and spinal cord, acting as a cushion for the brain's cortex, providing basic mechanical and immunological protection.

Shock Absorber

A mechanical device designed to absorb and dampen shock impulses in vehicles and machinery, contributing to smoother movement.

CNS

The central nervous system, consisting of the brain and spinal cord, which processes and sends out nerve signals.