Debit Card Payments in a Sales Invoice with Regular Terms

question 30

Multiple Choice

Debit card payments in a sales invoice with regular terms of net 30 will -

• A)debit the bank account instead of accounts receivable for the full invoice amount
• B)credit the bank account instead of accounts receivable for the full invoice amount
• C)reduce the bank deposit by the amount of the card transaction fees
• D)withdraw the full invoice amount from the customer's bank account in 30 days when the net amount is due

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Definitions:

Credit Column

Refers to the right side of a ledger account where entries serve to increase liabilities, revenues, or equity and decrease assets or expenses.

Accounting Cycle

The collective process of recording and processing the accounting events of a company, from when the transaction occurs, to its inclusion in the financial statements.

Financial Statements

Consolidated documents presenting the financial status, performance, and cash flows of a company, primarily comprising the balance sheet, income statement, and statement of cash flows.

Working Paper

Documents that record the detailed information and procedures used in an audit or financial analysis, serving as the basis for conclusions.