Wholesalers That Own the Merchandise They Sell but Do Not

question 88

Multiple Choice

Wholesalers that own the merchandise they sell but do not physically handle,stock,or deliver it are referred to as

• A)cash and carry wholesalers.
• B)rack jobbers.
• C)truck jobbers.
• D)manufacturer's representatives.
• E)drop shippers.

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Definitions:

Prior Period Adjustment

A prior period adjustment involves corrections of errors in previously issued financial statements, typically associated with the discovery of mistakes in accounting practices.

Equity Method

An accounting technique used to record investments in other companies, recognizing income and losses proportional to the level of ownership.

Outstanding Common Stock

Outstanding common stock refers to the total number of shares of a corporation's stock that are currently owned by all its shareholders, including shares held by institutional investors and restricted shares.

Unrecorded Patents

Patents that an organization owns which have not been recorded in its financial statements.