Which of the Following Statements About Home-Based Businesses Is True

question 80

Multiple Choice

Which of the following statements about home-based businesses is true?

• A)Having a business based at home increases the cash flow requirements of a start-up business.
• B)From around 1960 to 1980,home-based businesses largely fell out of favor.
• C)Because of the proximity of the business to the living area,no time is spent commuting between home and office.
• D)The U.S.Small Business Administration estimates that 93 percent of all businesses are home-based,putting the number at around 15 million firms.

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Definitions:

Straight-line Method

A method of calculating depreciation and amortization by evenly distributing the cost of an asset over its useful life.

Salvage Value

The projected value at which an asset can be sold after its period of usefulness, utilized in the computation of depreciation costs.

Depreciated

The reduction in value of an asset over time due to wear and tear, age, or obsolescence, commonly used in accounting to allocate the cost of an asset over its useful life.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements.