A Credit Card User's Credit Rating Will Be Harmed If

question 71

True/False

A credit card user's credit rating will be harmed if she pays only the minimum monthly payment on a credit card.

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Definitions:

Capital Balances

The amounts in a business's equity accounts that represent the owners' stakes in the company.

Noncash Assets

Assets owned by a business that cannot be easily converted to cash, such as property, plant, and equipment.

Loss on Realization

A financial loss recognized when liquidating assets yields less value than initially recorded on the books.

Income Ratio

A financial metric comparing some form of an entity's income to another, providing insights into financial stability, profitability, or performance.