Lynn Taylor Sells Revlon Cosmetics on Consignment to Grocery Stores

question 213

Multiple Choice

Lynn Taylor sells Revlon cosmetics on consignment to grocery stores, maintains the display racks, and restocks when necessary. Lynn's job is best described as a

• A) rack jobber.
• B) drop shipper.
• C) general merchandise wholesaler.
• D) cash-and-carry wholesaler.
• E) truck jobber.

---

Definitions:

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are reported.

Income Taxes Payable

This liability account shows the amount of income taxes owed to the government but not yet paid by a company.

Cash Payments

Outflows of cash from a company to settle obligations, including the payment of goods, services, and debts.

Operating Activities

Part of a company’s cash flow statement that shows the cash inflows and outflows related to its core business operations.