Reference no: EM132774164

Problem 1: Sellers allow customers to use bank (or third-party) credit cards for all of the following reasons except:

Option 1: To be able to charge more due to fees and interest.
Option 2: To avoid the risk of customers not paying.
Option 3: To speed up receipt of cash from the credit sale.
Option 4: To increase total sales.
Option 5: To avoid having to decide who gets credit and how much.

Problem 2: A promissory note:

Option 1: Is a short-term investment for the maker.
Option 2: Is a written promise to pay a specified amount of money at a certain date.
Option 3: Is a liability to the payee.
Option 4: Is another name for an installment receivable.
Option 5: Cannot be used in payment of an account receivable.