Credit Standards Refer to the Financial Importance of a Potential

question 8

True/False

Credit standards refer to the financial importance of a potential customer to the firm in order to qualify for credit.

---

Definitions:

Supplies

Items used in the daily operations of a business, such as office or cleaning supplies, that are essential but not directly tied to the production of goods.

Cash

A company's liquid assets that are available for immediate use for transactions, including currency and demand deposits.

Basic Accounting Equation

Assets = Liabilities + Owner’s Equity.

Electronic Equipment

Electronic equipment encompasses devices or systems that use electrical power to perform a wide range of functions, including computing, communication, and entertainment.