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

7. Receivables and Investments

Types of Receivables

Financial Accounting

7. Receivables and Investments

Types of Receivables

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Multiple Choice

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

Salary

Wage

Commission

Bonus

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Understand the different methods of employee compensation: Salary is a fixed regular payment, typically paid monthly or biweekly, not tied to performance. Wage is an hourly payment based on the number of hours worked. Bonus is an additional payment given for achieving specific goals or exceptional performance.

Recognize that commission is a payment method directly tied to the amount of sales an employee generates. It incentivizes employees to increase sales as their earnings depend on their performance.

Compare the options provided in the question: Salary, Wage, Bonus, and Commission. Determine which one aligns with the description of being based on sales generated.

Identify that Commission is the correct answer because it is specifically designed to reward employees based on the sales they produce, unlike Salary, Wage, or Bonus.

Conclude that the method described in the question is Commission, as it directly correlates with the sales performance of the employee.