A Disadvantage of Using a Credit Card Is That

question 4

Multiple Choice

A disadvantage of using a credit card is that:

• A) it is riskier than carrying cash because losing the card can cause the credit card issuer to file a case against the cardholder.
• B) it makes it difficult for the credit card users to track their expenditures.
• C) it makes it hard for some people to maintain financial discipline.
• D) many retailers do not offer warranty for products purchased using credit cards.

---

Definitions:

Merchandise Sold

The total cost of all products sold by a company during a specific period.

Cash Discount

An incentive offered by sellers to buyers for paying an invoice ahead of the scheduled due date.

Discount Period

The time frame between the issuance of a bill or an invoice and its due date, often associated with a discount offered for early payment.

FOB Shipping Point

A shipping term indicating that the buyer takes responsibility for the goods and covers shipping costs from the point of departure.