Layton Is Retired and Sells Hand-Crafted Fishing Rods as a Home-Based

question 741

True/False

Layton is retired and sells hand-crafted fishing rods as a home-based business for a little extra spending money.Because he processes less than a dozen credit card payments per year, he does not need to worry about PCI compliance requirements for handling his customers' payment information.

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Definitions:

Accounts Receivable

Money owed by customers to a company for goods or services that have been delivered or used but not yet paid for.

Credit Sales

Sales for which payment is not received at the time of purchase, allowing customers to pay at a later date, thereby creating receivables for the seller.

Cash Sales

Transactions where payment is made in cash at the time of purchase, without the extension of credit.

Inventory

The goods and materials that a business holds for the ultimate purpose of resale or production.