Which One of the Following Statements Is True About Credit

question 30

Multiple Choice

Which one of the following statements is true about credit cards -

• A)credit card issuers charge a percentage of the sale as the transaction fee
• B)credit cards used and credit cards accepted use the same set of linked accounts
• C)the linked bank account for credit cards used is the payables linked bank account
• D)the linked asset account for credit cards accepted is the receivables linked bank account

---

Definitions:

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and a share in the company's profits through dividends.

Other Comprehensive Income

Components of comprehensive income not included in net income, reflecting gains and losses that have not been realized through the income statement.

Journal Entries

The method by which financial transactions are recorded in an accounting system, involving a debit to one or more accounts and a credit to one or more accounts.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control those policies; often evidenced by ownership of 20% to 50% of the voting shares of the investee.