Which of the Following Is NOT an Explicit Cost for the Owner

question 137

Multiple Choice

Which of the following is NOT an explicit cost for the owner of a local pizza parlour?

• A) pizza ovens
• B) other uses for the land that the parlour sits on
• C) flour
• D) cleaning products

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Definitions:

Deferred Rent

An accounting practice where rent expenses are not immediately recognized but instead allocated over future periods to match usage with expense.

Financial Statements

Papers that give a summary of a company's financial status, featuring the balance sheet, income statement, and statement of cash flows.

Prepaid Rent

Rent payments made in advance of the rental period; it is recorded as an asset until the period to which it applies passes.

Financial Statements

Documents that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.