When Considering Startup Costs, There Will Be Many Expenses That

question 73

Multiple Choice

When considering startup costs, there will be many expenses that are not expected. It is wise to add an additional ______ to help cover those unexpected expenses.

• A) 2 percent
• B) 4 percent
• C) 6 percent
• D) 10 percent

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Definitions:

Boswell Co.

A fictitious or specific company name; without context, it's unspecified what industry or sector it belongs to.

Check Register

A record book or electronic log used to track checks written, deposits made, and current balance of a checking account.

Cash Balance

The amount of cash on hand or in bank accounts, typically shown on a company's balance sheet, representing liquid assets available for use.

Deposits

Funds placed into a bank account or a financial institution for safekeeping, which can include both cash and non-cash items.