The Commission Structure on a Share Purchase Is $20 Plus

question 34

Multiple Choice

The commission structure on a share purchase is $20 plus $0.02 per share. If you purchase 4 round lots of a share selling for $56, what is your commission?

• A)$20
• B)$22
• C)$26
• D)$28

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Definitions:

Installment Method

An accounting method that recognizes revenue and expenses only when payments are actually received or made, typically used in sales with extended payment plans.

Deferred Gross Profit

The portion of gross profit that is earned but not yet recognized, often in installment sales.

Current Liability

A company's debts or obligations that are due within one year, including accounts payable, short-term loans, and other short-term financial obligations.

Deposit Method

An accounting method used when revenue cannot be recognized because the fundamental earnings process is not considered complete.