Of the Following Four Options, Which One Is Designed as a Vehicle

question 52

Multiple Choice

Of the following four options, which one is designed as a vehicle for long-term credit?

• A) Open charge accounts
• B) Installment accounts
• C) Revolving charge accounts
• D) Credit cards

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Definitions:

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or wear and tear.

Cash Budget

A detailed plan showing how cash resources will be acquired and used over a specific time period.

Disbursements

The act of paying out money from a fund or account, typically for expenses or investments.

Financing

The process of providing funds for business activities, making purchases, or investing, which can come through various means like loans, equity investments, or credits.