Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Net Sales

Financial Accounting

4. Merchandising Operations

Net Sales

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Multiple Choice

3. Which of the following best describes a method of paying an employee based on the amount of sales the employee generates?

Commission

Hourly wage

Bonus

Salary

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Verified step by step guidance

Understand the concept of commission: Commission is a method of compensating employees based on the amount of sales they generate. It is typically expressed as a percentage of the sales revenue.

Compare commission with other payment methods: Hourly wage compensates employees based on the number of hours worked, salary provides a fixed periodic payment, and bonus is an additional payment often tied to performance but not directly linked to sales.

Identify the key characteristic of commission: It directly ties the employee's earnings to their sales performance, incentivizing them to generate more sales.

Analyze the question: The question asks for the payment method that is based on the amount of sales generated, which aligns with the definition of commission.

Conclude that commission is the correct answer, as it best describes the method of paying employees based on sales performance.