Credit Extended to Consumers for Short Periods of Time to Make

question 22

Multiple Choice

Credit extended to consumers for short periods of time to make specific purchases is

• A) installment credit.
• B) non-installment credit.
• C) revolving open-end credit.
• D) minimum limit credit.

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Definitions:

LIFO

"Last In, First Out," a method of inventory valuation where the most recently produced or acquired items are the first to be expensed.

Average Inventory

The mean value of a company's inventory over a specified period, often used to calculate turnover rates and efficiency in managing stock levels.

Gross Profit Method

A method of estimating inventory cost that is based on the relationship of gross profit to sales.

Merchandise Destroyed

Refers to goods or stock that have been ruined or damaged beyond sellable condition, often resulting in a loss for the business.