When Credit Is Offered with Only the Invoice as a Formal

question 14

Multiple Choice

When credit is offered with only the invoice as a formal instrument of credit, the credit procedure is called an

• A)invoice account.
• B)open account.
• C)unsecured account.
• D)unsecured note.

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Definitions:

Equity

The value of an owner’s interest in a property or a business, after deducting liabilities and debts.

Dividends

Dividends are a portion of a company's earnings distributed to shareholders, usually in the form of cash payments or additional shares, reflecting the company's profitability and investment return.

Ledger Account

A record that keeps track of all the transactions related to a particular aspect of a business's finances, such as sales or assets.

Land And Buildings

Assets categorization in accounting, where land refers to the cost of land owned by a company and buildings to the cost of structures situated on the land.