Which of the following statements is true? multiple choice
a) accounting profit is always positive.
b) economic profit is always positive.
c) economic profit is greater than or equal to accounting profit.
d) accounting profit is greater than or equal to economic profit.

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.

Based on the information given the appropriate entries to record the issuance of the note payable for cash and the first monthly payment are:

Corvallis Carnivals Journal entries

January 1, 2021

Debit Equipment $30,000

Credit Notes payable $30,000

( To record issuance of the note payable)

January 30, 2021

Debit Notes payable

($566.14-$125)

Debit Interest expense $125

($30,000 × 5% × 1 / 12)

Credit Cash  $566.14

(To record first monthly payment)

Explanation:

This is right have a great day:D