List Indicators That a Company May Be an Agent, Not

question 62

Essay

List indicators that a company may be an agent, not a principal, in a revenue transaction and explain the significance of this relationship in revenue recognition.

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Definitions:

Ethylene Oxide

An organic compound that is a colorless gas with a sweet odor, used as a sterilizing agent and an intermediate in the production of other chemicals.

Anionic

Pertaining to ions or molecules that carry a negative electric charge.

Cationic Polymerization

A type of polymerization where the growth of a polymer chain proceeds via cationic species as the propagating centers.

PhOH

Phenol, a toxic and caustic compound of benzene with an attached hydroxyl group, used as an antiseptic and in chemical manufacturing.