From the following details what will be the partners commission? Net profit before charging partners commission 65,000. Partners commission 11% before charging such commission
Correct answer: C. 7150
- A. 6441
- B. 5431
- C. 7150
- D. 5876
Explanation
Because the commission is calculated before charging commission, it is simply 11% of 65,000: 65,000 × 11% = 7,150. The after-commission formula is not applicable here.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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