Which of the Following Factors Is a Positive as It

question 27

Multiple Choice

Which of the following factors is a positive as it pertains to the financial feasibility of a business venture?

• A) inconsistent and slow growth in sales during the first five to seven years in a clearly defined market niche
• B) high percentage of recurring revenue
• C) inability to forecast income and expenses with a reasonable degree of accuracy
• D) reliance on externally generated funds to finance and sustain growth
• E) absence of an existing opportunity for investors to convert equity into cash

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Definitions:

Partial Payments

Payments that are made to settle a portion of the total amount owed, rather than the full balance.

Gross Method

An accounting treatment for purchases discounts where the discount is not recognized until payment is made within the discount period.

Net Method

An accounting approach to the purchase of goods that incorporates discounts for early payment directly in the reported cost of purchases.

Recording Invoices

The process of documenting sales or purchases in the accounting records, typically by entering them into a journal or ledger.