buscom

The MAIN CONCERN of accounting problems on agency accounting is

Financial record of the agency

• Complete set of financial statements and schedules

• Cash and sales book only, no financial statement

Size of entity and human resource of the branch

• Relative biggers, composed of managers, supervisions, and rank and file employees

• Relative smaller; composed of a few sales agents

Financial record of the branch

• Cash and sales book only, no financial statement

• Complete set of financial statements and schedules

Autonomy of the branch

• All decisions are made by the home office

• Operating decisions are delegated to the branch

Autonomy of the agency

• Operating decisions are delegated to the branch

• All decisions are made by the home office

Size of entity and human resource of agency

• Relative smaller; composed of a few sales agents

• Relative biggers, composed of managers, supervisions, and rank and file employees

Accounting entity of the branch

• Considered to be a distinct accounting entity

• Not considered to be a separate accounting entity

Accounting entity of agency

• Considered to be a distinct accounting entity

• Not considered to be a separate accounting entity

of an agency is equal to the amount of sales that has been invoiced or filled by the home office.