Credit Extended to Consumers for Short Periods of Time to Make

question 22

Multiple Choice

Credit extended to consumers for short periods of time to make specific purchases is

• A) installment credit.
• B) non-installment credit.
• C) revolving open-end credit.
• D) minimum limit credit.

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Definitions:

Par Value

A nominal value assigned to a security by the issuer, often used in the context of bonds or stock.

Yielding

The income return on an investment, such as the interest or dividends received from holding a particular security.

FASB 13

Accounting standard issued by the Financial Accounting Standards Board related to lease accounting.

Operating Lease

A lease in which the lessee does not effectively acquire ownership of the leased asset. Accounted for as a stream of expense payments on the income statement. No entry is made on the balance sheet to reflect the acquisition of the asset. The most common form of off balance sheet financing. Compare with Financing lease.