Businesses Often Require Customers with Poor Credit Ratings to Sign

question 210

True/False

Businesses often require customers with poor credit ratings to sign a promissory note as a condition for obtaining credit.

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Definitions:

Contingent Rentals

Contingent Rentals are lease payments that are not fixed or established in advance but depend on a future event or condition, like a percentage of sales.

Rental Income

The income received from leasing out property or other assets.

Depreciation Expense

Depreciation Expense represents the allocation of the cost of tangible assets over their useful lives recognizing a decrease in value due to wear and tear, deterioration, or obsolescence.