The Main Difference Between Agent Wholesalers and Merchant Wholesalers Is

question 271

Multiple Choice

The main difference between agent wholesalers and merchant wholesalers is:

• A) the kind of selling they do.
• B) that agent wholesalers do not own the products they sell-while merchant wholesalers do.
• C) that no agent wholesalers physically handle products-while all merchant wholesalers do.
• D) their attitudes regarding the marketing concept.
• E) There is no difference-an agent wholesaler IS a merchant wholesaler.

Analyze the impact of estimated returns on financial statements.

Identify the normal account balances for key accounts in sales transactions.

Classify accounts as assets, liabilities, revenues, or expenses based on transaction context.

Recognize the treatment of sales taxes in financial records.

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Definitions:

Voluntary Deductions

Optional deductions from an employee's paycheck, such as for health insurance or retirement savings plans.

FICA Taxes

Taxes imposed on both employees and employers to fund Social Security and Medicare, based on a percentage of the employees' wages.

Gross Earnings

The total income earned by an individual or business before any deductions or taxes.

Federal Income Taxes

Taxes imposed by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.