When Credit Is Offered with Only the Invoice as a Formal

question 14

Multiple Choice

When credit is offered with only the invoice as a formal instrument of credit, the credit procedure is called an

• A)invoice account.
• B)open account.
• C)unsecured account.
• D)unsecured note.

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Definitions:

Surplus

In economic terms, a situation where the quantity of a good or service available exceeds the quantity demanded at a specific price.

Binding Price Floor

A government or regulatory-imposed price control set above the equilibrium price, which prevents the market price from falling below that level.

Potential Sellers

Potential sellers are individuals or entities that may be willing to sell goods or services under the right conditions.

Price Floor

A government-imposed minimum price charged on a product, below which it cannot be sold to prevent market prices from falling too low.