The Use of a Credit Card Is Most Similar to

question 41

Multiple Choice

The use of a credit card is most similar to

• A)paying with a check.
• B)an ACH (automatic clearinghouse) transaction.
• C)purchasing a certificate of deposit.
• D)obtaining a short-term loan.

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Definitions:

Consolidated Statements

Financial statements that combine the accounts of a parent company with those of its subsidiaries, presenting the financial performance and position of the group as a single entity.

Encumbrance System

A system used in accounting to reserve portions of appropriated funds to avoid overspending, primarily used by governments.

Estimated Commitments

Obligations or contracts that a company is likely to incur in the future based on past or planned activities.

Journal Entry

A record in accounting that represents the recording of a financial transaction in a journal.