Indicate Whether Each of the Following Statements Is True or False

question 122

Short Answer

Indicate whether each of the following statements is true or false.
_____ a) A benefit of making credit card sales is that there is no cost to the merchant.
_____ b) A benefit of accepting credit cards is that increased sales may be generated.
_____ c) Recording a credit card sale increases total assets and increases total equity.
_____ d) Recording the collection of cash from the credit card company increases cash and increases revenue.
_____ e) The income statement is not affected at the time the cash receipt is recorded.

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Definitions:

Limited Partners

Investors in a partnership who are not involved in the daily operations of the business and whose liability is restricted to the amount of their investment.

Co-owners

Individuals or entities that hold ownership rights together in a property or asset, sharing the benefits as well as responsibilities.

Sole Proprietorship

A business structure where a single individual owns and operates the business, making them solely responsible for its debts and liabilities.

Dissolves

The act of officially ending the existence of an entity such as a corporation, partnership, or marriage.