Using a Credit Card Can Best Be Likened to

question 100

Multiple Choice

Using a credit card can best be likened to

• A)taking out a loan.
• B)a barter exchange.
• C)using any other form of money, because you can immediately take the goods you purchase home.
• D)writing a cheque on your chequable deposit.
• E)withdrawing money from a savings account.

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Definitions:

Profit Margin Ratio

A financial metric that measures the percentage of profit a company earns from its total revenue.

Net Income

The residual income of a business post all deductions, including taxes and expenses, from its gross income.

Net Sales

The total revenue generated from sales activities after deducting returns, allowances, and discounts.

Days' Sales in Inventory

A financial ratio that indicates the average time in days that a company takes to turn its inventory into sales.