(Consider This) Which of the Following Is Not True About

question 58

Multiple Choice

(Consider This) Which of the following is not true about the use of a credit card?

• A) It is a means of deferring payment for a short period of time.
• B) It allows people to "economize" on the use of money.
• C) Credit card balances are part of M2 but not part of M1.
• D) A credit card transaction is not the same as a debit card transaction.

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, helping to prepare the books for the next period.

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse certain adjusting entries made in the previous period.

T-Accounts

A graphic representation of a general ledger account that outlines the debit and credit sides to visualize the effect of transactions on the account.

Reversing Entries

Entries executed at the onset of an accounting cycle to annul or reverse the adjusting records that were established at the end of the last period.