Listed Below Are Five Terms Followed by a List of Phrases

question 43

Multiple Choice

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Treasury stock

• A)Similar to an S corporation, but no limit on number of owners.
• B)Net income as a percentage of average book value.
• C)Paid-in capital and/or retained earnings affected when sold.
• D)Preferred practice is to disclose in the notes to the financial statements.
• E)Used in evaluating stock performance.

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Definitions:

Graduated Commission

A graduated commission is a payment structure for sales personnel where the commission rate increases as the salesperson achieves higher sales thresholds.

Gross Earnings

The total income earned by an individual or company before any deductions or taxes.

Convention Centre

A large facility designed to host conferences, meetings, exhibitions, and other events.

Regular Hourly Rate

The wage earned for each hour of work, not including overtime rates.