YZ Company Accepted a National Credit Card for a $10,000

question 11

Multiple Choice

YZ Company accepted a national credit card for a $10,000 purchase.The cost of the goods sold is $8,000.The credit card company charges a 3% fee.What is the impact of this transaction on net operating income?

• A)Increase by $1,940.
• B)Increase by $2,000.
• C)Increase by $1,700.
• D)Increase by $9,700.

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Definitions:

External Users

Individuals or entities outside of a company who rely on financial statements to make informed decisions about the company, including investors, creditors, and regulatory agencies.

Shareholders

Shareholders are individuals or entities that legally own one or more shares of stock in a public or private corporation, giving them a claim on its assets and earnings.

Regulators

Authorities or agencies responsible for overseeing and enforcing laws within specific industries to ensure fairness, safety, and compliance.

External Auditors

Independent accountants or auditing firms that examine a company's financial statements and practices to ensure accuracy, compliance, and fairness.