Beth Is Considering Leaving Her Current Position to Open a Coffee

question 123

Multiple Choice

Beth is considering leaving her current position to open a coffee shop.Beth's current annual salary is $56,000.Beth is going to invest $200,000 of her own money to start the business.Estimated annual revenue from the new business is $250,000.What is the outlay cost associated with the decision to open the coffee shop?

• A)$50,000
• B)$56,000
• C)$200,000
• D)$250,000

---

Definitions:

Cost Of Sales

The direct costs attributable to the production of the goods sold by a company.

Separated-Entity Income Statements

Financial documents that detail the revenues, expenses, and net income of an entity as distinct from its owners or affiliated entities.

Entity Approach

A method in consolidated financial statements where the economic activities of a parent company and its subsidiaries are treated as a single economic entity.

Goodwill

An intangible asset originating from the acquisition of one company by another for a premium on the value, representing the reputation, brand, or other competitive advantages of the company.