With Open Account Credit,one Can Often Avoid Interest Charges If

question 1

Multiple Choice

With open account credit,one can often avoid interest charges if

• A)the account balance is paid in full every month.
• B)at least half the account balance is paid every month.
• C)the minimum payment is made every month.
• D)the account is a revolving credit account.
• E)the balance is below the credit limit.

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Definitions:

Revenue Account

An account that tracks the income earned by a company before any expenses are deducted, often classified by source.

Accounting Process

A series of procedures and steps taken for the purpose of accounting, including recording, classifying, and summarizing financial transactions.

Accounting Equation

The foundational principle of accounting, stating that assets equal liabilities plus equity.

Source Documents

Original records that contain the details of a business transaction, such as invoices, receipts, and contracts.