Which of the Following Statements About Debit Cards Is True

question 19

Multiple Choice

Which of the following statements about debit cards is true?

• A)A debit card uses the funds of the card holder to pay for the transaction.
• B)A debit card is similar to a credit card except that it has a lower credit limit.
• C)A debit card cannot be used for online transactions.
• D)A debit card is another name for a credit card.

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Definitions:

Projected Sales

These are estimated sales figures based on current market trends, historical sales data, and other economic indicators, used for planning and forecasting by businesses.

Retained Earnings

Retained earnings refer to the portion of a company's profits that is kept or retained rather than paid out as dividends to shareholders, often used for investment or to pay off debts.

Debt-Equity Ratio

A gauge that marks the relative positions of debt and equity in the funding of a company's assets.

Dividend Payout Ratio

The portion of earnings a company pays to its shareholders in the form of dividends, expressed as a percentage of the company's total net income.