To Avoid the Financial Problems Associated with Excessive Credit Card

question 119

Multiple Choice

To avoid the financial problems associated with excessive credit card debt,you should:

• A)Pay off your credit card balance in full each month
• B)Use your credit card to pay for small purchases
• C)Take advantage of the cash advance feature
• D)Use a large number of credit cards
• E)Avoid getting help if you think you are in trouble

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Definitions:

Cash Receipts

Money received by a business during a given period, accounting for its cash inflow.

Cash Payments

Transactions that involve the outflow of cash from a company to settle dues such as expenses, debts, or purchases.

Debit Balance

A situation where the sum of debits in an account exceeds the sum of credits, often indicating the amount owed or expenses.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those shown on a bank statement.