An Open Account Credit Occurs When a Firm Grants

question 23

Multiple Choice

An open account credit occurs when a firm grants:

• A)trade credit to customers who have an account with the firm.
• B)trade credit to customers who have depository accounts.
• C)trade credit to customers by collateralizing the assets sold to the customer.
• D)credit to customers who have an open bank account.

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Definitions:

Unbiased Coin

A coin for which the probability of landing on heads or tails is exactly 50%, indicating no preference or bias.

Expected Number

A statistical measure describing the average or mean value anticipated in a random variable or in the outcomes of a random experiment.

Binomially Distributed

A distribution characteristic of a random variable that represents the number of successes in a fixed number of independent Bernoulli trials, each with the same probability of success.

Standard Deviation

A formula to assess how widespread or dispersed a series of values is.