In 'Direct' Exporting, an Overseas Export Agent Working on Behalf

question 31

Multiple Choice

In 'direct' exporting, an overseas export agent working on behalf of a producer sells the goods in the overseas market and will receive:

• A)A commission on the sale, after taking ownership of the goods
• B)A commission on the sale, without taking ownership of the goods
• C)A monthly or annual retainer, and take ownership of the goods
• D)A monthly or annual retainer, without taking ownership of the goods
• E)Receive a wage or salary as a direct employee of the producer

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Definitions:

Direct Method

A technique used in cash flow statements to present cash activities directly related to operating activities.

Investing Adjustments

Adjustments made in the accounting records related to investments in securities or fixed assets to reflect their fair values as of the financial statement date.

Indirect Method

An accounting practice used to prepare the cash flow statement, where net income is adjusted for non-cash transactions and changes in working capital to calculate cash flow from operating activities.

Net Income

The total revenue minus total expenses, representing the company's profit.