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:

Treasury Note

A type of government bond issued by the U.S. Department of the Treasury with intermediate maturities ranging from 1 to 10 years.

Settlement

The process of transferring ownership of securities from the seller to the buyer and the corresponding payment from the buyer to the seller.

Accrued Interest

Interest that has been incurred but not yet paid, often considered in bond pricing and transactions.

Financial Press

Media outlets that provide news, analysis, and commentary on financial and economic subjects, including markets and business trends.