Which of the following statements regarding the use of bank credit cards in a re

Question

Which of the following statements regarding the use of bank credit cards in a retail business is false? A. The credit card company bills the customers for the amount of purchases made during the period rather than the retailer making the billings. B. Such cards are acceptable to businesses in order to minimize costs associated with losses and collection departments. C. The use of such cards may cause businesses to raise prices to compensate for additional costs associated with such cards. D. Accounts receivable from banks are outstanding for a much longer period of time than from individual customers because payment must reach the bank before the retailer is paid.

Explanation / Answer

The false statement is  A. The credit card company bills the customers for the amount of purchases made during the period rather than the retailer making the billings

Retailer (the person who are selling the goods) bills the customers for the amount of purchases made by the customer during the period and customer pays the amount via credit card.

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