Sales to Customers Who Use Bank Credit Cards, Such as MasterCard

question 82

Multiple Choice

Sales to customers who use bank credit cards, such as MasterCard and Visa, are generally treated as

• A) sales on account
• B) sales returns
• C) cash sales
• D) sales when the credit card company remits the cash

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Definitions:

Income Statement

A report detailing a business's earnings, expenditures, and overall profit or loss for a certain timeframe.

Balance Sheet

A financial briefing that condenses the assets, liabilities, and equity shares of a business at a designated point in time.

Revenues and Expenses

The income generated from normal business operations and the costs incurred to generate that income.

Income Statement

A financial statement that shows a company's revenues and expenses, resulting in net income or loss over a specific period.