Under the Net Method of Handling Credit and Debit Card

question 166

Multiple Choice

Under the net method of handling credit and debit card payments,the ________.

• A) net amount of the sale is credited to the Sales Revenue account on the date of sale
• B) credit to the sales revenue is selling price less the transaction fee
• C) business writes a check to the third-party processor for the processing fee
• D) processing fee is debited to the Credit Card Expense account on the date of sale

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Definitions:

Par Value

The face value of a bond or the stock value stated in the corporate charter, often used as a legal capital threshold for shares.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation, with voting rights and potential dividends.

Date of Acquisition

The specific date on which one company officially takes control of another company in a merger or acquisition.

Consolidated Buildings

Buildings or physical structures that have been combined into one entity, often for accounting or management purposes.