Economic Profits Are Less Than Accounting Profits Because the Calculation

Multiple Choice

Economic profits are less than accounting profits because the calculation of economic profit

A) includes the implicit charges for the use of capital owned by the firm and for risk taking.
B) is stipulated in regulations set forth by the Canada Revenue Agency.
C) includes the implicit charges for the use of capital owned by the firm and for income taxes.
D) includes an explicit charge for risk taking.
E) includes an amount for depreciation.