Which of the following is NOT an example of an agency arrangement where the selling entity would recognise revenue on a net basis?
A) A travel agent selling an airline ticket to a customer, charging the customer $200 and remitting $180 to the airline.
B) A supermarket selling groceries to a customer for $110 and remitting $10 GST to the government.
C) A distributor receiving stock from its supplier on a sale-or-return basis. The sales price per unit is $120 and the cost per unit is $75
D) A licensed hotel selling keno tickets to customers for $5.00 and remitting $4.50 per ticket to the state gaming authority.

Question

Quizplus · Accepted Answer

The distributor does not recognise revenue on a net basis because it has not sold the stock to the customer.

Which of the Following Is NOT an Example of an Agency