accounting and economic profits
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Free InquiryWhich of the following statements are true in regard to the relationship between accounting profits and economic profits?
In forming your response, note the definitions in this website https://corporatefinanceinstitute.com/resources/knowledge/accounting/accounting-profit-vs-economic-profit/#:~:text=Accounting%20Profit%20vs.%20Economic%20Profit%20Accounting%20profit%20is,flow%20that%E2%80%99s%20generated%20above%20all%20other%20opportunity%20costs
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A. Accounting profits can be positive while economic can be negative at the same time.
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B. Economic profits account for the required returns to investors, which accounting profits do not explicitly do so.
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C. Both a and b
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D. Neither a nor b
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