When Wallace Made a Commission That Was Greater Than the Salary

question 8

Multiple Choice

When Wallace made a commission that was greater than the salary of his company's senior vice president,he was pleased with his accomplishments.He was not so happy when the company told him that there was a _____ and that he would receive only $50,000 in commissions,about 40 percent less than what he had made.

• A) draw
• B) quota
• C) base
• D) cap
• E) bonus

---

Definitions:

Vouchers Payable

An accounting term that refers to accounts payable obligations for which vouchers have been created but not yet paid.

Unpaid Voucher File

A file or record keeping system that tracks invoices and vouchers that have not yet been paid by the company.

Sales Discounts

Reductions in the price of goods sold, offered to customers as an incentive to either prompt payment or increase sales volume.

Vouchers Payable

Liabilities or debts owed by a company for purchases made on credit, documented by vouchers.