Q6RQ - Horngren'S Financial And Managerial Accounting

Question

What are some benefits to a business in accepting credit cards and debit cards?

Step-by-Step Solution

Answer

A significant advantage of accepting credit and debit cards are attracting more customers.

Step 1: Meaning of Credit Card

A straightforward but unusual credit card enables the owner to make transactions without using cash. Instead, when a credit card is used, the owner borrows money from the bank that issued the card, which is frequently the case. 

Step 2: Some benefits to a business in accepting credit cards and debit cards

Accepting credit cards and debit cards has advantages for businesses, including the ability to draw in more clients, the elimination of the need to check each client's credit history, the elimination of the need to keep accounts receivable records, and the elimination of the need to pursue collections from clients.