Which Type of Wholesale Organization Would Be Most Useful to a Small

question 49

Multiple Choice

Which type of wholesale organization would be most useful to a small manufacturer that has shipments that are too small to fill a truck or railcar?

• A) Rack jobbers
• B) Cash-and-carry wholesalers
• C) Piggy-backers
• D) Freight forwarders

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Definitions:

Deferred Tax Asset

An accounting term for items that will reduce future tax liability due to deductible temporary differences and carryforwards.

Warranty Costs

Expenses associated with repairing or replacing products under warranty.

Installment Sales Method

An accounting technique used to recognize revenue from sales when payments are received in installments over a period of time.

Tax Purposes

The reasons or motivations behind decisions or actions taken to comply with tax laws and regulations.