Critical Thinking Questions Case 1-1 Perry Has Recently Expanded His

question 44

Multiple Choice

Critical Thinking Questions Case 1-1 Perry has recently expanded his business and hired two employees.As a result of this expansion, he is considering carefully how to establish policies and procedures for creating workbooks.Perry decides that before either of his employees creates a new workbook he must give them a ____.

• A) requirements document
• B) USB flash drive
• C) file name
• D) table of keyboard shortcuts

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Definitions:

Leverage

The use of borrowed capital or financial instruments to increase the potential return of an investment.

Equity Financing

The process by which a company raises capital through the sale of shares.

Depreciation

A method of allocating the cost of a tangible asset over its useful life.

Noncash Expense

Expenses recorded on an income statement that do not involve a direct cash outflow, such as depreciation or amortization.