What Is the Major Difference Between a Selling Agent and a Manufacturer's

question 92

Multiple Choice

What is the major difference between a selling agent and a manufacturer's representative?

• A) A selling agent represents several manufacturers, but a manufacturer's representative represents only one manufacturer.
• B) A selling agent is paid on a commission basis, but a manufacturer's representative is remunerated on an annual basis.
• C) A selling agent serves as an independent marketing department for a manufacturer, while a manufacturer may hire several manufacturers' representatives.
• D) A selling agent is paid on an annual basis, but a manufacturer's representative is paid on a commission basis.

Understand the classification and characteristics of different types of bonds.

Gain knowledge of the reasons behind and implications of debt settlement transactions.

Understand the basic characteristics and classifications of liabilities.

Recognize the accounting treatment and reporting of current liabilities.

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Definitions:

Comparative Balance Sheet

A financial statement that presents the financial position of a company at two or more different points in time, allowing for trend analysis.

Financing Activities

Transactions related to raising funds or repaying investors, such as issuing debt or equity, or repaying loans.

Cash Dividend

Cash or stock disbursement from a firm to its owners, typically stemming from the company's profits.

Bonds Payable

Long-term debt instruments issued by corporations or governments, promising to pay the bondholder a specified sum of money at future dates.