Which of the Following Statements About Merchandise Brokers Is True

question 148

Multiple Choice

Which of the following statements about merchandise brokers is true?

• A) Brokers are paid salaries by the manufacturers for whom they work.
• B) Brokers never take title to the merchandise they sell.
• C) Brokers work for manufacturer-owned intermediaries.
• D) Brokers typically represent sellers on an ongoing basis.
• E) Brokers work in industries with only a few, very large buyers and sellers.

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Definitions:

Days' Sales

A financial metric that estimates the average time it takes for a company to collect cash from its customers after a sale has been made, often related to inventory turnover.

Receivables

Financial assets representing money owed to an entity by others for goods delivered or services provided on credit.

Return on Total Assets

A financial ratio that measures the net income produced by total assets during a period.

Interest Expense

The cost incurred by an entity for borrowing funds, represented as an expense on the income statement.