Regarding the Gross Method of Handling Credit and Debit Card

question 26

Multiple Choice

Regarding the gross method of handling credit and debit card transactions,which of the following statements is correct?

• A) The total sale amount is deposited on the date of the actual sale.
• B) The processing fees for all transactions processed for the month are deducted from the company's bank account, often on the last day of the month.
• C) On the date of sale, the Sales Revenue account is credited for the amount of sale less the processing fee.
• D) The journal entry on the date of sale is identical to a journal entry made for a sale on account.

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Definitions:

Profit-Sharing Incentive

A compensation strategy where employees receive a share of the company's profits, motivating them to contribute to its success.

Broad View

An approach or perspective that considers a wide range of factors, implications, or possibilities.

Organization Effective

Measures the success with which an organization achieves its intended outcomes, through efficient resource utilization and strategic goal achievement.

Balanced Scorecard

A system for strategic planning and management that aligns organizational activities with its vision and strategy, enhances communication both internally and externally, and tracks the organization's performance in relation to its strategic objectives.