Angela Approaches David Hughes, Owner of Hughes Auto Parts, to Talk

question 256

Multiple Choice

Angela approaches David Hughes, owner of Hughes Auto Parts, to talk about the possibility of adding a new line of products to his store. Angela tells David that the product is a line of high-quality driving sunglasses. She offers to set up the display, service and restock it weekly, and maintain billing and inventory records. She tells David that all she needs is a couple of square feet of space. Angela is in the business of serving retailers as a

• A) general-line wholesaler.
• B) specialty-line wholesaler.
• C) rack jobber.
• D) full-service merchant wholesaler.
• E) cash-and-carry wholesaler.

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Definitions:

Net Income

The final earnings of a corporation once expenses and taxes are subtracted from its gross income.

Income Summary Account

An account used in the closing process to summarize the results of all revenue and expense accounts.

Capital

Financial assets or the financial value of assets, such as cash and goods, used by an organization to fund its operations and grow.

Revenue Account

An account that records the income generated from selling goods or providing services, which contributes to a company's gross income.