For a Person Whose Income Is Based on a Commission

question 320

Multiple Choice

For a person whose income is based on a commission (earning a percentage of the value of their sales) , then

• A) the household budget line must have a very steep slope.
• B) the household budget line is more uncertain from month to month than if income were a fixed monthly amount.
• C) it is best to think optimistically and assume that a high level of income will exist.
• D) the lower the salary, the flatter the slope of the budget line will be.

---

Definitions:

Non-Monetary Assets

Assets that are not in the form of cash or cannot be easily converted to cash, such as property, plant, and equipment.

Proportionately Adjusted Income Statement

An income statement where the figures reflect the proportional share of joint ventures or associates in a company's earnings.

Contractual Agreement

A legally binding agreement between two or more parties outlining the terms and conditions of a business transaction.

Financial Statements

Summarized records of a company's financial activities, including the income statement, balance sheet, cash flow statement, and statement of changes in equity, which provide insights into its financial health.