A Business Should Provide the Owner with a Reasonable Rate

question 136

Multiple Choice

A business should provide the owner with a reasonable rate of return based upon ________.

• A)the time and money invested in the business
• B)industry averages
• C)the capital borrowed from the bank
• D)an acceptable annual salary

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Definitions:

Pen Sets

Writing instruments, such as pens, that are sold together as a set, often presented in a case or package.

FIFO Method

Stands for First In, First Out, an accounting method for valuing inventory where the oldest items in stock are sold or used first.

Ending Inventory

The final amount of products on hand at the close of an accounting period, reflecting the inventory that was not sold.

Tennis Rackets

Equipment used in the sport of tennis, consisting of a handle attached to a framed grid of tightly pulled strings.