The Size Standard for Small Business Used in the Textbook

question 12

Multiple Choice

The size standard for small business used in the textbook would exclude firms that

• A) have more than 10 employees.
• B) have more than 100 employees.
• C) have more than two owners.
• D) sell products of services outside the local community.

---

Definitions:

Straight-Line

A method of allocating an asset's cost evenly over its useful life for purposes of depreciation.

Contra Asset Account

An account on a balance sheet that reduces the value of an associated asset account, such as accumulated depreciation.

Accumulated Depreciation

Accumulated depreciation is the total amount of depreciation expense that has been recorded for an asset, representing how much of its value has been depleted over time.

Cost Expiration

A concept in accounting indicating the point at which a cost becomes an expense, typically when a cost directly contributes to generating revenue.