When the Credit Card Processor Deposits the Gross Proceeds from Credit

question 44

Multiple Choice

When the credit card processor deposits the gross proceeds from credit and debit card sales ________.

• A)there will be no fee charged for the transaction
• B)the deposit is made on the last day of the month
• C)the total sales less the processing fee assessed equals the net amount of cash deposited
• D)the processing fees are deducted from the company's bank account by the processor

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Definitions:

Fair Value

An estimate of the price at which an asset or liability could be traded in an orderly transaction between market participants at the measurement date.

Unrealized Profits

Gains that have been achieved on paper from an investment but have not yet been realized through a sale or transaction.

Intercompany Sales

Transactions of goods or services between subsidiaries within the same corporate group, not affecting consolidated revenue.

Mark-Up

The amount added to the cost price of goods to cover overhead and profit in setting the selling price.