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

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which of the following is an example of a net brokerage agreement?

An agreement where the broker is paid only if the client makes a profit.

An agreement where the broker's commission is based on the net proceeds after expenses are deducted.

An agreement where the broker's commission is calculated on the gross sales amount.

An agreement where the broker receives a fixed salary regardless of sales.

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Verified step by step guidance

Understand the concept of a net brokerage agreement: A net brokerage agreement is a type of arrangement where the broker's commission is calculated based on the net proceeds after expenses are deducted. This means the broker's earnings depend on the amount remaining after all costs associated with the transaction are subtracted.

Analyze the options provided in the problem: Carefully read each option and identify which one aligns with the definition of a net brokerage agreement.

Option 1: 'An agreement where the broker is paid only if the client makes a profit.' This does not specify that the commission is based on net proceeds after expenses, so it does not fit the definition.

Option 2: 'An agreement where the broker's commission is based on the net proceeds after expenses are deducted.' This directly matches the definition of a net brokerage agreement.

Option 3: 'An agreement where the broker's commission is calculated on the gross sales amount.' This refers to gross sales, not net proceeds, so it does not fit the definition. Option 4: 'An agreement where the broker receives a fixed salary regardless of sales.' This is a fixed salary arrangement, not a commission-based agreement, so it does not fit the definition.