Another Name for Closed-End Credit Is

question 96

Multiple Choice

Another name for closed-end credit is:

• A) a line of credit.
• B) convenience credit.
• C) revolving credit.
• D) installment credit.
• E) bank card credit.

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Definitions:

Total Current Liabilities

These are obligations that a company is required to pay within one year or within the normal operating cycle.

Working Capital

The variance between a business's immediate assets and its short-term obligations, signalling its ability to meet short-term debts.

Current Ratio

A financial liquidity ratio that compares a company's current assets to its current liabilities.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects on its credit sales by comparing net credit sales with the average accounts receivable over a period.