When Used Effectively,credit Can Result in

question 125

Multiple Choice

When used effectively,credit can result in

• A) Default.
• B) Bankruptcy.
• C) Loss of creditworthiness.
• D) Financial loss.
• E) Improved lifestyle.

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Definitions:

Total Debits

The sum of all debit entries in a financial account or ledger, representing expenses or assets.

Closing Process

The procedure used in accounting to close out accounts at the end of an accounting period, summarizing revenues and expenses and showing net income or loss.

Income Summary

An account to which all income statement account balances are transferred at the end of an accounting period to determine the net profit or loss.

Net Loss

The amount by which total expenses exceed total revenues for a business, indicating a financial loss.