Katya owns a math-tutoring business. Her accountant most likely includes which of the following costs on her financial statements?
(i)workbooks containing practice problems
(ii)rent for the storefront
(iii)wages Katya could earn as a bookkeeper
(iv)interest that Katya's money was earning before she spent her savings to set up the tutoring business
A)(i) only
B)(i) and (ii) only
C)(iii) and (iv) only
D)(i), (ii), (iii), and (iv)

Question

Quizplus · Accepted Answer

Workbooks and rent are actual business expenses that would be recorded on financial statements. Wages Katya could earn and interest lost are opportunity costs, not recorded on financial statements.

Katya Owns a Math-Tutoring Business