Middlemen Are Individuals Who

question 23

Multiple Choice

Middlemen are individuals who

• A) add to the buyer's expense without performing a useful function.
• B) add to the seller's cost without performing a useful function.
• C) provide services that reduce the cost of transactions and help achieve additional gains from trade.
• D) act as a middle person between the top management of a business firm and the hourly employees who actually produce the goods and services.

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Definitions:

Generally Accepted Accounting Principles

A set of accounting standards and procedures adopted in the U.S. that guide how financial statements are prepared and reported.

Correcting Entries

Entries made in a journal to correct mistakes or inaccuracies found in the financial statements or ledgers after they have been posted.

Revenue

The sum of income a corporation generates from selling products or offering services over a specified timeframe.

Expense

refers to the money spent or cost incurred in an organization's efforts to generate revenue, representing the cost of doing business.