_____ Is/are Created When a Business Is Adequately Capitalized and Has

question 25

Multiple Choice

_____ is/are created when a business is adequately capitalized and has highly regarded investors; an experienced management team; customers; a unique technology, product, or service; the ability to continually innovate; and a rapidly expanding market.

• A) Value
• B) Economies of scale
• C) Inventory turnover
• D) Validation
• E) A competitive advantage

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Definitions:

Bank Reconciliation

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement.

Outstanding Checks

Checks that have been written and recorded in the payer's accounting system but have not yet been cleared or cashed by the recipient.

Bank Statement

A summary of financial transactions that have occurred over a given period on a bank account held by a person or business with a financial institution.

Notes Receivable

Claims against debtors that are supported by formal agreements or promissory notes, specifying the amounts owed and payment terms.