Which One of the Following Is an Advantage of Using

question 139

Multiple Choice

Which one of the following is an advantage of using credit?

• A)Potential bankruptcy
• B)Spending beyond your budget
• C)Providing help in emergencies
• D)Committing future income to pay for current purchases
• E)Incurring interest charges

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Definitions:

Property, Plant

Assets that are used in operations and have a useful life longer than one year, such as buildings, machinery, and equipment.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired.

Cash Dividends

Payments made by a corporation to its shareholder members from current or retained earnings, usually in the form of cash.

Operating Activities

The day-to-day functions of a business related to producing and delivering its goods and services, as reflected in its cash flow.