Retailers Generally Consider Sales from the Use of National Credit

question 95

Multiple Choice

Retailers generally consider sales from the use of national credit card sales as a

• A) credit sale.
• B) collection of an accounts receivable.
• C) cash sale.
• D) collection of a note receivable.

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Definitions:

Owner's Equity

The ownership stake of shareholders or owners in a company's assets once all debts have been subtracted.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, resulting in a net profit or loss.

Capital Account

An account on the balance sheet representing the original investment by the owners plus any retained earnings.

Owner Invests

The action taken by an owner to contribute resources, such as cash or other assets, into the business for its use.