-Intermediaries Perform Three Basic Functions

question 324

Multiple Choice

-Intermediaries perform three basic functions. According to Figure 12-2 above, B represents a(n) __________.

• A)logistical function
• B)transactional function
• C)middleman function
• D)facilitating function
• E)operational function

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Definitions:

Merchandise Purchases Budget

A merchandise purchases budget outlines the planned spending on goods for resale during a certain period, considering expected sales and inventory requirements.

Credit Sales

Sales made on credit, allowing customers to pay at a later date, which are recorded as accounts receivable on the balance sheet.

Cash Receipts

The collection of cash during a period, including cash sales and received payments from customers.

February Sales

The total revenue generated from sales activities in the month of February.