Which of the Following Statements About Sales Territories Is INCORRECT

question 90

Multiple Choice

Which of the following statements about sales territories is INCORRECT?

• A) A sales territory contains present customers.
• B) Geographic boundaries define a sales territory.
• C) Firms use sales territories to evaluate performance.
• D) A sales territory typically contains potential customers.
• E) A sales territory comprises a geographic area assigned to a salesperson.

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Definitions:

Stockholders' Equity

The portion of the capital of a company that belongs to the shareholders; it represents the residual assets of a company after debts and liabilities have been settled.

Debit Balance

The sum remaining in an account after all debts have been subtracted from the total credits, indicating an excess of debits over credits.

Credits

Accounting entries that increase liabilities or equity or decrease assets, reflecting the sources of funding or income.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to check the accuracy of financial recordings.