When a Merchant Sells Merchandise and Lets the Customer Pay

question 87

Multiple Choice

When a merchant sells merchandise and lets the customer pay with a VISA credit card:

• A)The strategy may increase sales dramatically,with no additional costs involved.
• B)At the time of sale,Credit Card Receivable is debited and Sales Revenue is credited for the discounted portion of the sale amount.
• C)The merchant's point-of-sale terminal is linked to a VISA server which automatically credits the merchant's bank account for the full sale amount.
• D)The credit card discount is similar to interest expense and is reported on the income statement separately from operating income as other income (expense).

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Definitions:

Emotional Expression

The way individuals convey their feelings and emotions to others, through facial expressions, voice, body language, and actions.

Social Referencing

The process by which individuals look to others in their environment to obtain cues on how to react or behave in certain situations.

Emotional State

The current condition of one's emotions, which can influence thoughts, behaviors, and physical responses.

Facial Communication

The use of facial expressions and movements to convey emotions, intentions, or social information.