Which One of the Following Best Describes a Broker

question 48

Multiple Choice

Which one of the following best describes a broker?

• A)intermediary who arranges trades between a buyer and a seller
• B)trader who buys and sells from his or her inventory
• C)firm which charges a commission for arranging a transaction
• D)person who buys securities for his or her own account on an exchange floor
• E)trader who transacts business on behalf of a securities issuer

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Definitions:

Accounts Payable

Liabilities of a business that are owed to creditors for goods and services purchased on credit.

Credit To Inventory

An accounting entry that increases the inventory asset account due to purchases on credit.

Perpetual Inventory System

An automated inventory management system which promptly registers inventory transactions during sales or purchases through digital point-of-sale systems and enterprise asset management software.

Purchases Returns

Transactions involving the return of goods previously bought to the supplier, often due to defects, inaccuracies, or other reasons, leading to a refund or credit note.