When a Business Is Able to Deposit Its Credit Card

question 30

True/False

When a business is able to deposit its credit card sales invoices directly into a special bank account,it debits Cash,not Accounts Receivable.

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Definitions:

Contractual Obligations

Responsibilities or duties that are legally enforceable and arise from a contract between parties.

Insurance Contract

An Insurance Contract is a legal agreement between an insurer and the insured, outlining the policy terms, coverage limits, and premiums for the risk assumed by the insurer.

Insurer Accepts

The act of an insurance company agreeing to take on the risk and provide coverage as outlined in the insurance policy.

Binder

A temporary insurance contract that provides coverage until a permanent policy is issued.