Rachel Has Set Up a Firm That Buys Circuit Boards

question 33

Multiple Choice

Rachel has set up a firm that buys circuit boards from overseas producers and sells them to a local computer manufacturing company. Which title best describes her role in the computer manufacturing distribution mix?

• A) marketer
• B) sales agent
• C) broker
• D) retailer
• E) wholesaler

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Definitions:

Balance Sheet Approach

A method for valuing accounts that focuses on determining net realizable values for balance sheet items.

Credit Sales

Sales transactions where the payment is deferred, allowing the buyer to purchase goods or services on credit.

Bad Debts Expense

An expense reported on the income statement, representing accounts receivable that a company does not expect to collect.

Income Statement Approach

A method for creating an adjusting entry for bad debts by estimating uncollectible accounts based on income statement figures.