If a Company Accepts a Major Credit Card Such as VISA

question 187

True/False

If a company accepts a major credit card such as VISA from a customer, then the company is responsible for the amount of the sale in a case of nonpayment from a cardholder.

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Definitions:

Revenue Accounts

Accounts that track the income generated from the company's primary operations and other activities.

Expense Accounts

Accounts used to track money spent or costs incurred in a company's operation to generate revenue.

Year-End Closing Process

The series of steps taken to close out business accounts at the end of the fiscal year, preparing the books for the next fiscal period.

Fees Earned

Income generated from providing services, regarded as a revenue for the entity performing the service.