Advantages to Buying an Existing Business That You Do Not

question 73

Multiple Choice

Advantages to buying an existing business that you do not have with a startup include ________.

• A)greater access to venture capital
• B)the opportunity to participate in a national advertising campaign
• C)inventory is in place and trade credit is established
• D)easy implementation of innovations and changes from past policies

Comprehend the impact of changes in current asset and current liability accounts on cash flows from operating activities.

Understand the classification of different types of cash flows in the statement of cash flows.

Identify the components of cash flows from operating activities using the indirect method.

Understand the treatment of noncash investing and financing activities in the statement of cash flows.

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Definitions:

Total Assets

The sum of all assets owned by a company, including cash, inventory, and property.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Percentage Of Decrease

A measure that calculates the decrease in a quantity as a percentage of its previous value.

Accounts Payable

Liabilities of a business that are due to be paid to creditors within a short period of time, usually one year.