Final answer:
The statement that sales from Visa and MasterCard are considered credit sales is true. This is due to the fact that credit card transactions involve the credit card company paying the retailer immediately and the user owing that amount to the company later.
Step-by-step explanation:
Sales resulting from the use of Visa and MasterCard are considered credit sales by the retailer. This statement is true. When a customer uses a Visa or MasterCard for a purchase, the retailer treats this transaction as a credit sale. This is because the payment is made via the credit card company, which provides a short-term loan to the cardholder. The credit card effectively takes the role of a middleman, transferring funds from the credit card company's account to the retailer. The user does not immediately pay for the goods or services but incurs a debt to the credit card company, to be paid at a later date, typically the end of the billing cycle.
Understanding that credit cards represent an agreement to pay the issuer back, the distinction between cash sales and credit sales becomes evident. Cash sales occur when payment is made immediately in cash or by debit card. In contrast, credit sales are when payment is deferred, and the merchant receives the payment through the financial backing of the credit card company, with the understanding that the customer has the obligation to settle the account later. This arrangement reflects the concept of "good debt," wherein the credit extended allows for the continuation of commerce and can be beneficial when managed properly.