To Effectively Run a Business,it Is Necessary To

question 64

Multiple Choice

To effectively run a business,it is necessary to:

• A)Hire a full-time accountant.
• B)Use a public accounting firm.
• C)Understand and use accounting information.
• D)Make certain that you do not spend too much time on your accounting system.

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Definitions:

Employer Cost

The total expense incurred by employers to compensate employees, including salaries, benefits, and taxes.

Interest Expense

The cost incurred by an entity for borrowing funds.

Contingent Liability

A potential obligation that may arise depending on the outcome of a future event, which is not yet certain to occur.

Advance Payments

Payments made by a buyer earlier than the agreed upon payment schedule, often to secure an order or as a deposit.