Start- Up Costs Include All of the Following Except

question 65

Multiple Choice

Start- up costs include all of the following except

• A)training costs of employees.
• B)changes in inventory storage space.
• C)investment costs in accounts receivable.
• D)service agreement costs.

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Definitions:

Cash Dividend Payment

A distribution of a company's earnings declared by the board of directors to its shareholders in the form of cash.

Financing Activities

Financing activities are transactions between a company and its creditors or investors, including issuing equity, paying dividends, and obtaining or repaying loans, which are used to fund the company's operations or expansions.

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Cash Flow Ratio

A liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash flows from operations.