If the Owner Plans to _____ a Business,he or She

question 35

Multiple Choice

If the owner plans to _____ a business,he or she should be removing all surplus cash and tightening the cash-to-cash cycle to the shortest time possible.

• A) transfer
• B) sell
• C) terminate
• D) start

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Definitions:

Depreciation Expense

Systematically dividing the cost of a tangible asset over its estimated useful life.

Impairment Losses

Monetary losses identified when the book value of an asset is higher than its salvageable value.

Fair Value

An estimate of the price at which an asset or liability could be traded in a fair transaction between willing parties.