Another Name for Open-End Credit Is

question 36

Multiple Choice

Another name for open-end credit is:

• A) revolving credit.
• B) a box of credit.
• C) convenience credit.
• D) installment credit.
• E) single lump-sum credit.

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Definitions:

Merchandise Inventory

The value of the products that a company has in stock and intends to sell.

FOB Shipping Point

A term used in shipping agreements indicating that the buyer is responsible for paying shipping costs and for the goods at the point of departure from the seller's shipping dock.

Inventory Turnover

An indicator of the number of times a business's inventory turns over and is replenished during a certain period, demonstrating how efficiently inventory is managed.

Specific Identification Method

An inventory valuation method that tracks the actual cost of each specific item of inventory to determine cost of goods sold and ending inventory.