A Liability Is Created

question 89

Multiple Choice

A liability is created

• A)when merchandise is purchased with cash.
• B)when owners invest in a company.
• C)when merchandise is sold on account.
• D)when salary expense is recognized before employees are paid.
• E)when rent is paid in advance.

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Definitions:

Independent Salespeople

Individuals who sell a company's products or services without being employed by the company, often working on a commission basis.

Insurance Company

A business that provides coverage, in the form of compensation resulting from loss, damages, injury, treatment, or hardship in exchange for premium payments.

Key Account Management

A strategic business approach focusing on building and maintaining strong relationships with a company's most important customers.

Team Selling

A sales strategy where a group of company representatives work together to sell a product or service, leveraging their combined expertise.