Before Shipping a Computer,Mega Computers Insists That the Buyer Sign

question 160

Multiple Choice

Before shipping a computer,Mega Computers insists that the buyer sign a document that states when and how much money will be paid.This is a(n)

• A) line of credit.
• B) revolving credit agreement.
• C) open-book credit.
• D) trade acceptance.
• E) promissory note.

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Definitions:

Units of Production

A method of depreciation that calculates the expense based on the actual usage or production levels of an asset, rather than time.

Master Budget

A comprehensive financial planning document that combines all of the individual budgets related to sales, cost of goods sold, operating expenses, and other activities into one consolidated plan.

Sales Volume

The quantity of products or services sold by a company within a specific period.

Standard Cost Performance Report

A financial analysis tool that compares actual costs incurred to standard costs, identifying variances for managing performance.