If a Company Receives a Commission on Products It Sells

question 146

True/False

If a company receives a commission on products it sells but otherwise has no control over selling prices, it is essentially acting as an agent on behalf of another company, and would likely record revenue from these sales on a net basis.

---

Definitions:

Normal Fault

A type of geological fault where the hanging wall has moved downward relative to the footwall, usually due to extensional forces.

Cleavage

In geology, the tendency of a mineral to break along flat, parallel surfaces determined by its crystal structure.

Hornfels

A hard, fine-grained metamorphic rock formed by the contact metamorphism of clay-rich or silicate rocks.

Thrust Fault

A type of fault in which the upper block, above the fault plane, moves up and over the lower block.