Which of the Following Is Not a Disadvantage of Credit

question 16

Multiple Choice

Which of the following is not a disadvantage of credit cards?

• A) They allow the consumer the ability to rent cars and make online reservations.
• B) They make it easy to lose control of spending.
• C) In general they are an expensive way to borrow money.
• D) Using them means you will have less spendable money in the future.
• E) All of the above are cons.

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Definitions:

Prepaid Rent

Payments made in advance for rent that is recorded as an asset on the balance sheet until it is expensed over time as it is used.

Rent Expense

The cost incurred for using a property or equipment that is not owned by the company, typically charged on a periodic basis.

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Supplies Used

The cost of materials and supplies consumed during an accounting period in the course of operations.