The Type of Credit Where the Consumer Takes Possession of the Goods

question 113

Multiple Choice

The type of credit where the consumer takes possession of the goods and the business then bills the consumer is known as a/an

• A) Open charge account
• B) Installment account
• C) Line of credit
• D) Debit card

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Definitions:

Currency Option

An economic instrument granting the bearer the option to swap currencies at an established rate on a designated date, without the compulsion to proceed.

Foreign Exchange Gain

Profit realized from the conversion of foreign currency into the domestic currency at a higher exchange rate than when it was acquired.

Accounts Payable

A liability to a creditor, carried on an open account, usually for purchases of goods and services.

Net Income

The income that remains in a business after all costs and expenses have been subtracted from total revenue, indicative of the financial performance.