An Account in Which to Record the Fee Charged by Banks

question 81

Multiple Choice

An account in which to record the fee charged by banks on a firm's credit card sales

• A)Purchases discount
• B)Cash discount
• C)Trade discount
• D)Credit terms
• E)Cash payments journal
• F)Promissory note
• G)Cash receipts journal
• H)Credit Card Expense
• I)Credit period
• J)Sales discount

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Definitions:

Operating Income

The profit realized from a business's operations after deducting operating expenses such as wages, depreciation, and cost of goods sold.

Segment Margin

The amount of profit or loss generated by a particular segment of a business after accounting for the direct and indirect costs associated with that segment.

Segmented Income Statement

An income statement that breaks down revenue, expenses, and profit by individual segments of the business.

Contribution Format

A type of income statement where costs are separated into variable and fixed categories, highlighting the contribution margin.