When Is Credit Said to Have Occurred

question 72

Multiple Choice

When is credit said to have occurred?

• A)when a promissory note for payment is issued
• B)when one party sells goods to another party
• C)when one party gives a loan to another party
• D)when one party pays back money that he owes to another party

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Definitions:

Estimated Average Annual Income

An approximation of the amount of money one is expected to earn on average each year, considering various income sources over a specified period.

Average Investment

The mean value of all investments held over a specific period, used to assess overall investment performance.

Estimated Average Annual Income

An approximation of the amount of money an individual or business expects to earn in an average year.

Straight-Line Method

A method of amortizing a bond discount or premium that provides for equal amounts of discount (or premium) to be written off to interest expense each period.