Match the Following Terms with Their Definitions

question 24

Multiple Choice

Match the following terms with their definitions.
-APR

• A)Total of all payments minus amount financed
• B)Effective interest rate
• C)A payment process
• D)A revolving charge account
• E)Sum of daily balance divided by number of days in billing cycle
• F)Total of all monthly payments plus down payment
• G)Used in calculation of average daily balance
• H)Doesn't dictate interest rates
• I)Cash price minus down payment
• J)Used to calculate rebate of finance charge
• K)Purchase till maximum credit reached
• L)Initial cash payment

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Definitions:

Net Income

The total earnings of a company or individual after deducting expenses, taxes, and deductions.

Gross Profit

The financial difference between revenue and the cost of goods sold (COGS), indicating the efficiency of a business in managing its direct costs.

Cost of Goods Sold

An accounting term representing the direct costs attributable to the production of the goods sold by a company.

Administrative Expenses

Costs related to the general operation and management of a business, such as salaries of executive personnel and office supplies.