Which of the Following Is Not True About Annual Fees

question 89

Multiple Choice

Which of the following is not true about annual fees on credit cards?

• A) The fees are the same on all credit cards.
• B) The fees may be high, amounting to several hundred dollars per year for some prestige cards.
• C) Many cards do not have annual fees.
• D) Some cards may waive the fees for individuals who pay their credit card bills in a timely manner.

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Definitions:

Accrued Expense

Expenses that have been incurred but not yet paid or recorded through a standard accounting transaction, often recognized at the end of an accounting period.

Electric Bill

The cost incurred for the consumption of electricity by a household, business, or organization.

Paid

The process of disbursing money in exchange for goods or services, or the act of fulfilling an obligation such as a debt.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made for accruals and deferrals.