Along with a Computer,Mega Computers Has Sent a Document That

question 27

Multiple Choice

Along with a computer,Mega Computers has sent a document that states the promised payment date and amount.The buyer must sign it before taking the computer.This is a(n)

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

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Definitions:

Cumulative Dividends

Dividend payments that must be paid out to preferred shareholders before any dividends can be issued to common shareholders.

Consolidated Balance Sheet

A balance sheet that provides a financial snapshot of a parent company and its subsidiaries as one single entity, consolidating all assets, liabilities, and equity.

Equipment

Tangible property used in the operation of a business that is not intended for sale in the ordinary course of business.

Acquisition Differential

The disparity between the acquisition cost and the fair market value of the identifiable net assets obtained.