Which of the Following Is a Correct Statement About Credit

question 110

Multiple Choice

Which of the following is a correct statement about credit?

• A)A debtor provides funds.
• B)It is easier to obtain funds than pay them back.
• C)Regular repayment is not necessary.
• D)The interest is the total amount to be repaid.

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Definitions:

Cash Fund

A reserve of cash set aside for specific needs or emergencies, ensuring liquidity for unexpected expenses.

Gain on Disposal

The profit realized from the sale of an asset for more than its book value.

Cost of Goods Sold

The total cost associated with making or acquiring any goods sold during a reporting period.

Natural Resources

Assets that consist of standing timber and underground deposits of oil, gas, and minerals.