Owner-Operator Is a Type of Operating Structure in Which the Owners

question 2

True/False

Owner-operator is a type of operating structure in which the owners of a business are directly responsible for its day-to-day operation. Also known, in some cases, as an "independent."

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Definitions:

Purchases Discounts

Reductions in price given by suppliers to businesses when they buy goods or services, often provided for early payment.

Freight In

The cost associated with the transportation of goods or materials into a business, typically considered part of the cost of goods sold.

Gross Profit

The difference between revenue and the cost of goods sold before accounting for certain other costs.

Periodic Method

An inventory accounting method where the inventory balance is updated at the end of each period after a physical count.