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

What is the term for earning money based on a percentage of total sales made?

Sales Commission

Operating Income

Gross Profit

Net Sales

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Verified step by step guidance

Understand the concept of earning money based on a percentage of total sales made. This is typically a form of compensation tied directly to sales performance.

Review the term 'Sales Commission.' It refers to a payment made to an employee or salesperson based on a percentage of the sales they generate.

Compare 'Sales Commission' with other terms provided: 'Operating Income,' 'Gross Profit,' and 'Net Sales.' These terms relate to broader financial metrics and are not directly tied to individual sales performance.

Recognize that 'Operating Income' refers to the profit generated from a company's core business operations, 'Gross Profit' is the difference between revenue and cost of goods sold, and 'Net Sales' is the total revenue after deducting returns, allowances, and discounts.

Conclude that the correct term for earning money based on a percentage of total sales made is 'Sales Commission,' as it directly describes the concept in question.