Refer to Scenario 1-2

question 20

Multiple Choice

Refer to Scenario 1-2.Franky joins what percentage of small businesses that have failed?

• A) 10 percent
• B) 18 percent
• C) 50 percent
• D) 75 percent

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Definitions:

Revenues

The entire sum of earnings resulting from the sales of products or services central to a business's primary functions.

Office Supplies

Tangible items used in an office environment for daily operations, such as pens, paper, and staplers.

Stockholders' Equity

The portion of the balance sheet that represents the capital received from investors in exchange for stock, plus retained earnings and minus the company's treasury stock.

Contra Asset

An account on a company's balance sheet that offsets or reduces the balance of a related account.