Asked by Reegan Van Rooyen on Jun 18, 2024
Verified
Which of the following is not true regarding a bank (or third party) credit card expense?
A) Credit card expense may be classified as a "discount" deducted from sales to get net sales.
B) Credit card expense may be classified as a selling expense.
C) Credit card expense may be classified as an administrative expense.
D) Credit card expense is not recorded by the seller.
E) Credit card expense is a fee the seller pays for services provided by the card company.
Credit Card Expense
Expenses incurred by using a credit card, typically involving interest charges and other fees.
Administrative Expense
Costs related to the general operation and administration of a business, including salaries of executive staff, office supplies, and utilities, but not directly tied to production or sales.
- Understand the rationale for merchants utilizing credit cards and factoring.
Verified Answer
EF
Elliott FulghumJun 18, 2024
Final Answer :
D
Explanation :
This statement is not true. Credit card expense is recorded by the seller as a fee paid for services provided by the card company.
Learning Objectives
- Understand the rationale for merchants utilizing credit cards and factoring.
Related questions
Sellers Allow Customers to Use Bank (Or Third-Party)credit Cards for ...
A Company Pledges Their Receivables So They May ...
Credit Card Companies Require Low Minimum Payments That Impose Significant ...
Which Would Be the MOST Secure Password for Your Bank ...
Factoring Makes It Possible for a Loan to Be Increased ...