In what circumstances would business expenses be passed on to a client?
A) if they are directly related to a project for that specific client
B) if they improve the effectiveness of the business's employee
C) If the client has paid for similar expenses in the past
D) if the business is not sure if the expenses are necessary
All of the following are examples of start up costs EXCEPT?
A) payroll taxes
B) First and last months’ rent purchasing
C) required equipment
D) Hiring a lawyer to review a franchise agreement
A bank or other investor will consider a business solid of it has a debt ratio of
A) 40%
B) 50%
C) 60%
D) 70%
Cash basis and accrual accounting methods will produce slightly different bottom lines
True
False
