A Good Example of an Open-End Credit Is

question 5

Multiple Choice

A good example of an open-end credit is

• A)the use of a bank credit card to make a purchase.
• B)the mortgage loan from a savings and loan institution.
• C)automobile loan from a credit union.
• D)installment loan from a furniture store.
• E)installment loan for purchasing a major appliance.

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Definitions:

Non-Current Assets

Long-term assets that are not expected to be converted into cash within one year of the balance sheet date, including property, plant, equipment, and intangible assets.

Gain on Sale

The financial profit realized when the selling price of an asset exceeds its book value or costs at the time of sale.

AASB 107/IAS 7

Accounting standards that set out the requirements for entities to present statements of cash flows, classifying cash flows during the period from operating, investing, and financing activities.

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, categorizing cash activities into operating, investing, and financing activities.