The Successor to the Business Owner Needs to Have Both

question 27

True/False

The successor to the business owner needs to have both technical ability-knowledge of the business and financial ability-and understanding of the financial aspects of the business for the transition to succeed.

---

Definitions:

Anticipated Current Expenses

Projected expenses that a company expects to incur within the current accounting period.

Petty Cash Funds

A small amount of cash on hand used for paying minor expenses like office supplies or courier fees.

Minor Business Expenses

Smaller or less significant costs incurred in the operation of a business.

Bank Reconciliation

The process of matching and adjusting the balance of an account in an entity's ledger to the corresponding bank statement, identifying discrepancies.