Some Businesses Use Cycle Billing, in Which a Company Bills

question 73

True/False

Some businesses use cycle billing, in which a company bills a portion of its credit customers each day of the month to smooth out uneven cash receipts.

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Definitions:

Interest Rate

The amount charged by a lender to a borrower for the use of assets, usually expressed as a percentage of the principal amount.

APR

APR, or Annual Percentage Rate, is the annual rate charged for borrowing or earned through an investment, inclusive of any fees or additional costs associated with the transaction.

Zero-Interest Financing

A financing arrangement where the borrower does not pay any interest on the borrowed amount, often used as a promotional strategy by retailers.

Monthly Payments

Regular payments made each month, often associated with loans or leases, intended to repay borrowed money plus any applicable interest.