You Want Your New Company to Move Toward Cashless Transactions

question 1

Multiple Choice

You want your new company to move toward cashless transactions. You know that this method has grown enormously in Canada and you feel confident that it will work for you. Which of the following statements is false with respect to cashless transactions?

• A) Credit cards are protected by the Bills of Exchange Act
• B) Merchants pay a fee to a card issuer to participate in electronic payments
• C) Debit cards are not protected by the Bills of Exchange Act
• D) E-banking has reduced the use of cheques in Canada

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Definitions:

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or completion.

Allowance for Doubtful Accounts

An accounting provision made by a company to account for customers who may not be able to make required payments, affecting the accounts receivable balance.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Adjusting Entry

An accounting journal entry made at the end of a period to record any unrecognized income or expenses for that period, ensuring accuracy of the financial statements.