What Must an Owner Do to Operate a Successful Home-Based

question 65

Multiple Choice

What must an owner do to operate a successful home-based business in balance with his personal life?

• A) change when the business is over one year old
• B) make a cost analysis that clearly divides costs between the business and home
• C) establish spatial and nonspatial boundaries between the business and the home
• D) create separate parking spaces for clients

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Definitions:

Posting

The process of recording financial transactions in the ledger of a business.

Chart of Accounts

A structured list of all the financial accounts in the general ledger of a company, used for organizing transactions and reporting financial data.

Ledger Accounts

These are individual financial accounts within the accounting system of an organization that record specific transactions related to assets, liabilities, equity, revenue, and expenses.

Financial Statement Order

The typical sequence in which financial statements are prepared and presented, usually starting with the income statement, followed by the balance sheet, and the cash flow statement.