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Why are credit sales recognized as revenue even though no cash has yet been received by the business? |
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Answer
A credit card sale is the bank guaranteeing a business the money. The only way a business would not get the money from a credit card transaction is if the bank would go out of business (pretty slim odds)
First answer by Ben. Last edit by Ben. Question popularity: 69 [recommend question]
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Revenue is properly recognized? Credit management policies and sales perfomance of business firms?
