7. dennis is the owner of a small accounting firm. in july, revenues were down and he needed help to be able…

7. dennis is the owner of a small accounting firm. in july, revenues were down and he needed help to be able to pay his employees. he asked for $50,000 from a business partner and promised to pay an amount back in the future. this is an example of which of the following? a manufacturing cost. an indirect cost. an interest rate. a bond.

7. dennis is the owner of a small accounting firm. in july, revenues were down and he needed help to be able to pay his employees. he asked for $50,000 from a business partner and promised to pay an amount back in the future. this is an example of which of the following? a manufacturing cost. an indirect cost. an interest rate. a bond.

Answer

Brief Explanations:

  • A manufacturing cost is related to production, not borrowing, so this is incorrect.
  • An indirect cost is a cost not directly traceable to a product/service, irrelevant here.
  • An interest rate is a percentage for borrowing, not the borrowing itself.
  • A bond is a debt instrument where one borrows and repays later, matching Dennis' situation of borrowing $50,000 to repay in the future.

Answer:

A bond.