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elena-s [515]
3 years ago
15

Which of the following statements is true? Multiple Choice

Business
1 answer:
ser-zykov [4K]3 years ago
5 0

Answer: Option D

Explanation: Accounting profit is always equals to or greater than the economic profit of an entity. This is due to the fact that, while computing accounting profit the accountant do no take implicit cost into consideration.

Whereas, economic profit is the amount of profit remaining after deducting both explicit and implicit cost.

Implicit cost refers to the cost of loosing profits by choosing one alternative over other.

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