Which of the Following Features Does Not Accurately Describe a Line

question 101

Multiple Choice

Which of the following features does not accurately describe a line of credit?

• A)Credit line approved before the money is actually needed
• B)Funds available immediately when needed
• C)Obtainable from a credit union, savings and loan association, or bank
• D)It has a ceiling
• E)Long-term loan

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Definitions:

Net 30 Credit Policy

A Net 30 credit policy is a payment term that allows customers to pay the full invoice amount within 30 days after the invoice date.

Monthly Interest Rate

The Monthly Interest Rate is the percentage of interest that is charged or earned on an amount of money over a month.

Variable Cost

Costs that vary directly with the level of production or volume of output, such as raw materials and direct labor expenses.

Restocking Costs

Expenses incurred when replenishing inventory, including purchasing, shipping, and handling costs.