Which of the Following Is Most Likely a Consequence of Paying

question 129

Multiple Choice

Which of the following is most likely a consequence of paying most or all of a salesperson's compensation in the form of commissions?

• A) It encourages the salesperson to focus on closing the sale.
• B) It frees the salesperson to focus on developing customer goodwill.
• C) It encourages teamwork over individual performance.
• D) It makes the employee appreciate the reward as the reward relates to economic conditions.
• E) It will quickly become expensive for the employer.

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Definitions:

Unearned Revenue

Money received by an entity for goods or services yet to be delivered or rendered, recognized as a liability until the obligation is fulfilled.

Adjusting Entries

Journal entries made at the end of an accounting period to update account balances before the preparation of financial statements.

Unbilled Consulting Revenue

Unbilled consulting revenue refers to earnings from consulting services that have been delivered but not yet invoiced to the client.

Depreciation

The process of methodically dividing the expense of a physical asset over its estimated useful life.