Multiple Choice
Why would a company debit Interest Receivable in its accounting records?
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7. Receivables and Investments
Types of Receivables
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is NOT an example of a stored-value card?
A
Credit card
B
Payroll card
C
Prepaid debit card
D
Gift card
Verified step by step guidance1
Understand the concept of stored-value cards: Stored-value cards are prepaid cards that have a specific monetary value stored on them, which can be used for transactions. Examples include gift cards, prepaid debit cards, and payroll cards.
Analyze the options provided: Credit cards, payroll cards, prepaid debit cards, and gift cards.
Differentiate between stored-value cards and credit cards: Credit cards are not stored-value cards because they allow users to borrow money up to a certain limit and repay it later, rather than using a preloaded balance.
Confirm the characteristics of payroll cards, prepaid debit cards, and gift cards: These are stored-value cards because they have a preloaded balance that can be used for transactions.
Conclude that the correct answer is the option that does not fit the definition of a stored-value card, which is the credit card.
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