Which of the following statements correctly describes the relationship between the accounting systems used for a sales agency when compared to the accounting systems used for a branch office?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Which of the following statements correctly describes the relationship between
the accounting systems used for a sales agency when compared to the
accounting systems used for a branch office?

A. The accounting system of the sales agency is not usually considered a separate
segment of the company’s entire accounting system but the accounting system of the
branch office is usually considered a separate segment of the company’s entire
accounting system.


B. None of the above.


C. The sales agency accounting system can be set up to measure the profitability of the
sales agency but the branch accounting system cannot be set up to measure the
profitability of the branch.


D. The sales agency accounting system cannot be set up to measure the profitability of
the sales agency but the branch accounting system can be set up to measure the
profitability of the branch

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