How Does Accepting Payment by a Bank- Issued Credit Card

question 52

Multiple Choice

How does accepting payment by a bank- issued credit card affect the recognition of an individual sales transaction?

• A)Decreases sales revenue and increases operating expense
• B)Increases loss
• C)Increases operating expense
• D)Decreases sales revenue

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Definitions:

Callable Preferred Stock

Callable preferred stock is a type of preferred share that gives the issuer the right to redeem the stock at a predetermined price after a specific date.

Cumulative Preferred Stock

A type of preferred stock that has a feature where missed dividend payments accumulate and must be paid out before dividends can be issued to other stock types.

Outstanding Shares

Represents the total shares of a corporation’s stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares rather than cash.