Documentation of Most Credit Problems Stays in a Consumer's File

question 11

Multiple Choice

Documentation of most credit problems stays in a consumer's file for at least

• A)six months.
• B)one year.
• C) five years.
• D) seven years.

---

Definitions:

Depreciation Expense

The allocation of an asset's cost over its useful life, representing the wear and tear, deterioration, or obsolescence of the asset.

Cash Flows

The total amount of money being transferred into and out of a business, particularly in terms of liquidity and financial planning.

Noncash Asset

Assets that cannot be easily converted into cash, such as buildings, equipment, and inventory.

Long-term Debt

Borrowings and financial obligations that are due to be repaid over a period longer than one year.