Which of the following is not a reason for the Jones Hardware Store to accept credit cards from customers?
A)Jones can receive its money faster than if it directly extended credit to the customer by an account receivable.
B)The credit card company offers a discount to Jones so that Jones will have more money available for operations.
C)Jones will not have to be concerned with nonsufficient funds checks from customers.
D)Jones will not have to have extra office workers to make phone calls to customers requesting collections on accounts.

Question

Quizplus · Accepted Answer

The reason "The credit card company offers a discount to Jones so that Jones will have more money available for operations" is not a valid reason for Jones to accept credit cards. While credit card companies often offer incentives such as cash back or rewards programs to customers, they typically do not offer discounts for businesses to accept credit cards. The other three reasons (faster payment, avoidance of bounced checks, and reduction of collection costs) are all potential benefits of accepting credit cards for businesses like Jones Hardware Store.

Which of the Following Is Not a Reason for the Jones