It Is Safer to Use Credit,since Charge Accounts and Credit

question 136

True/False

It is safer to use credit,since charge accounts and credit cards let you shop and travel without carrying a large amount of cash.

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Definitions:

Acquisition Cost

The total cost incurred to acquire an asset, including the purchase price and all related expenses.

Indirect Method

A way of reporting net cash flows from operating activities in a cash flow statement by starting with net income and adjusting it for changes in balance sheet items.

Operating Activities

Business activities related to the core functions of a company including production, sales, and delivery of the company’s products and services.

Gain

A financial gain occurs when the selling price of an asset exceeds its purchase price, resulting in a positive difference.