Author Question: Why are credit card sales important to businesses? What will be an ideal ... (Read 72 times)

tfester · **on:** Jul 5, 2018

Why are credit card sales important to businesses?

What will be an ideal response?

Question 2

The cash account in the company's ledger is a(n)
a. asset with a normal debit balance
b. asset with a normal credit balance
c. liability with a normal debit balance
d. liability with a normal credit balance

pallen55 · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

Credit card sales in which businesses accept credit cards, such as MasterCard and VISA, can be a valuable part of the business process. In accepting such credit cards, businesses are transferring the risk of uncollectible accounts to the financial institutions that issue the cards. In addition, businesses don't have to run credit checks, manage accounts receivable collections, and go after customers who are slow in paying accounts. Businesses have to pay credit card service fees. However, the benefits mentioned above far outweigh the cost of the fees.

Answer to Question 2

a