How Are Drawing Accounts Used

question 78

Multiple Choice

How are drawing accounts used?

• A)to provide a steadier income for salespeople who work on commission
• B)to motivate employees who receive a straight salary
• C)to attract salespeople who are willing to sell low-margin items
• D)to reward the best salespeople in each department
• E)to pay employees for performing customer service activities

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Definitions:

Accounts Receivable

Funds that a company is yet to receive from its customers for products supplied or services rendered but haven't been paid for.

Percentage Increase

A measure that calculates the growth of a value over a period as a proportion of the earlier value, often expressed as a percentage.

Sales Data

Information and records of the quantity, price, and terms of sales transactions, used for analysis and business planning.

Preceding Year

The year that directly comes before the current year, often used as a reference point for financial analysis or comparison.