Which of the Following Is a Disadvantage When a Business

question 148

Multiple Choice

Which of the following is a disadvantage when a business accepts credit cards or debit cards from customers?

• A) The business bears the responsibility of collecting cash from the customer.
• B) The business bears the risk of nonpayment by the customer.
• C) The business pays a processing fee.
• D) The business checks customers' credit ratings.

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Definitions:

Depreciation Expense

Allocating the value of a tangible asset evenly over its period of usefulness in a systematic manner.

Accumulated Depreciation

The aggregate depreciation charges applied to an asset since its initial utilization.

Worksheet

A paper or electronic document used to organize and simplify complex information, often used in accounting and financial analysis.

Income Statement Columns

Sections in an income statement that categorize financial data such as revenues, expenses, and net income over a specific period.