In Open-End Credit,what Are the Various Systems Creditors Use to Calculate

question 79

Essay

In open-end credit,what are the various systems creditors use to calculate the balance on which they assess finance charges?

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Definitions:

Petty Cash Fund

A petty cash fund is a small amount of cash on hand used for paying expenses too small to merit writing a check or using a credit card.

Reimburse

To pay back or compensate someone for expenses they have incurred, typically related to business costs or travel expenses.

Voucher System

A business's set of procedures for authorizing and recording liabilities and cash disbursements.

Invoice Approval

The process of reviewing and verifying invoices before payment, ensuring they match purchase orders and delivery receipts.