Ben,a Computer Systems Salesperson,is Compensated by His Firm with a Drawing

question 1

Multiple Choice

Ben,a computer systems salesperson,is compensated by his firm with a drawing account plan.At the beginning of each month,Ben receives $1,000.This month,Ben's sales resulted in commissions of $2,500.What will most likely occur as a result?

• A) Ben will receive an additional $3,500 from the firm.
• B) Ben will receive an additional $2,500 from the firm.
• C) Ben will receive an additional $1,500 from the firm.
• D) Ben will pay the firm $1,500.
• E) Ben will pay the firm $1,000.

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Definitions:

Financial Statement

Reports that detail the financial activities and position of a business, entity, or individual, typically including the balance sheet, income statement, and cash flow statement.

Assumptions

Statements taken to be true for the purpose of argument or investigation, often foundational in financial modeling and planning.

Inferences

Conclusions or deductions made based on evidence and reasoning.

Horizontal Analysis

A financial analysis technique that compares historical financial data over a series of reporting periods to identify trends and growth patterns.