Acme Company Has an Agreement with a Major Credit Card

question 146

Multiple Choice

Acme Company has an agreement with a major credit card company that calls for cash to be received immediately upon deposit of Acme customers' credit card sales receipts.The credit card company receives 3.5% of card sales as its fee.If Acme has $2,000 in credit card sales,which of the following statements are true?

• A)Acme debits Cash $2,000.
• B)Acme debits Cash $1,930.
• C)Acme debits Accounts Receivable - Credit Card Co $2,000.
• D)Acme debits Accounts Receivable - Credit Card Co $1,930.
• E)Acme credits Sales $1,930.

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Definitions:

Authority-compliance Manager

describes a leadership style focused predominantly on efficiency and task completion, often at the expense of team member relationships and morale.

Impoverished Manager

An impoverished manager adopts a low concern for both people and production, minimizing involvement in leadership duties and often resulting in a lack of innovation and motivation within teams.

Initiating Structure

Leader behavior aimed at defining and organizing work relationships and roles, as well as establishing clear patterns of organization, communication, and ways of getting things done.

Work Relationships

The interpersonal connections and interactions that occur between individuals in a professional setting.