When Credit Is Offered with Only the Invoice as a Formal

question 16

Multiple Choice

When credit is offered with only the invoice as a formal instrument of credit,the credit procedure is called:

• A) invoice account.
• B) open account.
• C) unsecured account.
• D) unsecured note.
• E) None of these.

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Definitions:

Marginal Revenue

The increase in revenue that results from selling one additional unit of a product or service.

Demand Curve

A graph showing the relationship between the price of a good and the amount of that good that consumers are willing to purchase at various prices.

Elastic Segment

A portion of the demand curve where consumers are highly responsive to changes in price, indicating elasticity.

Total Revenue

The total amount of money received by a company for goods sold or services provided during a specific period.