Which of the Following Is an Example of Closed-End Credit

question 32

Multiple Choice

Which of the following is an example of closed-end credit?

• A) A mortgage loan.
• B) A department store credit card.
• C) Overdraft protection.
• D) A bank line of credit.
• E) All of these are examples of closed-end credit.

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Definitions:

FIFO

This inventory management and valuation method assumes that the oldest products are sold or used first; an acronym for "First In, First Out," detailing a specific approach to inventory and asset management.

Periodic Inventory System

An inventory accounting system where stock levels and cost of goods sold are calculated at the end of an accounting period, rather than being continuously updated.

Ending Inventory

The price of items for sale at the closing of a fiscal period.

Lower Of Cost

An accounting principle stating that inventory or other assets should be recorded at the lower of either the original cost or the current market value.