The fees charged businesses by banks on credit card transactions can be shown on the income statement as:
A) A discount from revenue used in determining net sales.
B) A selling expense.
C) An administrative expense
D) All of these answers are correct.
E) None of these answers is correct.

Question

Quizplus · Accepted Answer

The fees charged by banks on credit card transactions can be considered as a discount from revenue, a selling expense, or an administrative expense, depending on how the business chooses to classify them in their financial statements.

The Fees Charged Businesses by Banks on Credit Card Transactions