Which of the Following Is Not an Example of an Agency

question 23

Multiple Choice

Which of the following is not an example of an agency arrangement where the selling entity would recognise revenue on a net basis?

• A) A retailer selling goods to a customer for $88 and remitting $8 GST to the government.
• B) A travel agent selling a cruise ticket to a customer, charging the customer $2 000 and remitting $1 800 to the cruise liner company.
• C) A licensed hotel selling keno tickets to customers for $5.00 and remitting $4.50 per ticket to the state gaming authority.
• D) A distributor receiving stock from its supplier on a sale-or-return basis. The sales price per unit is $100 and the cost per unit is $60.

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Definitions:

Quantity Supplied

The total amount of a product or service that producers are willing and able to sell at a given price over a specified period.

Derived Demand

The demand for a factor of production or intermediate good that occurs as a result of the demand for another product or service.

Factor of Production

Inputs used in the production of goods or services in the process of wealth creation, including labor, capital, land, and entrepreneurship.

Human Capital Development

Refers to the process of improving an individual's skills, knowledge, and abilities, typically through education and training, to enhance their productivity and potential in the workforce.