Michael is a franchise restaurant owner. Which of the following best describes his franchising costs?
a. a franchise fee to start, a monthly royalty as a percentage of sales, and other operational costs
b. a royalty to the franchisor calculated as a percentage of net income plus other operational costs
c. his costs are the same as any other restaurant owner
d. a franchise fee to start plus other operational costs
a. a franchise fee to start, a monthly royalty as a percentage of sales, and other operational costs
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A customer is instructed to send his remittance advice and check to a bank's postal address. This method for collecting customer cash receipts is called:
a. electronic funds transfer b. automated clearing house c. Check 21 d. Lockbox
Which of the following expense accounts is associated with natural resources??
a. Depreciation expense. b. Amortization expense. c. Depletion expense. d. Capitalization expense.
Under the perpetual inventory system, when a sale is made, both the retail and cost values are recorded
Indicate whether the statement is true or false
A cash flow statement is a financial report that forecasts how much cash will be available after paying expenses.
Answer the following statement true (T) or false (F)