The Maximum Dollar Amount of Credit the Lender Has Made

question 133

Multiple Choice

The maximum dollar amount of credit the lender has made available to you is called:

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

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Definitions:

Operating Activities

Business actions related directly to the production, sale, and delivery of goods and services, as distinguished from financing and investing activities.

Cash Dividends

Payments made by a corporation to its shareholders, typically out of its profits or reserves.

Accrued Liabilities

Financial obligations that a company has incurred during a period but has not yet paid by the end of that period.

Accounts Payable

A liability account that records amounts a company owes to suppliers for goods and services purchased on credit.