Which of the Following Is Not Correct About Cash Advances

question 31

Multiple Choice

Which of the following is not correct about cash advances?

• A)There is no grace period for cash advances.
• B)The interest rate for cash advances is higher than for purchases.
• C)A cash advance is like a loan.
• D)A transaction fee of 5 percent may be charged.

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Definitions:

Cash

Money in the form of coins or banknotes, especially that which is available for transactions and accounting purposes.

Office Supplies

Items used in offices by businesses and other organizations for writing, printing, filing, and performing other tasks.

Accounts Payable

Obligations or amounts owed by a company to suppliers for goods or services that have been received but not yet paid for.

Accounts Receivable

Money owed to a company by its debtors for goods or services that have been delivered or used but not yet paid for.