The Time Frame When Customers Are Allowed to Pay Their

question 90

Multiple Choice

The time frame when customers are allowed to pay their bills and still be eligible for a discount is the:

• A)credit period.
• B)discount period.
• C)closing period.
• D)due date.

---

Definitions:

Stock Securities

Financial instruments that represent ownership shares in a corporation, entitling the holder to a portion of its assets and earnings.

Available-For-Sale Securities

Financial assets that are neither held for trading purposes nor intended to be held to maturity, which can be sold in the short-term.

Trading Securities

Financial instruments bought and held primarily for selling them in the near term to profit from short-term price fluctuations.

Fair Value

An estimate of the market value of an asset or liability, based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.