Asked by
Gabriel zheng
on Dec 05, 2024Verified
Which of the following does not correctly describe the effect of a credit card discount?
A) Net sales decrease and gross profit decreases.
B) Net sales decrease and net income decreases.
C) Operating expenses remain the same and net income decreases.
D) Neither operating expenses nor net income is affected
Credit Card Discount
Fee charged by the credit card company for its services.
Net Sales
The revenue a company makes after subtracting the costs for returns, compensation for damaged or missing items, and any permitted discounts.
Gross Profit
The disparity between income generated and the expenses incurred in producing a product or delivering a service, prior to subtracting costs for overheads, employee salaries, taxes, and interest expenses.
- Scrutinize how financial accounts and methods of bookkeeping are affected by sales returns, discounts, and allowances.
Verified Answer
1M
Learning Objectives
- Scrutinize how financial accounts and methods of bookkeeping are affected by sales returns, discounts, and allowances.