Which of the Following Will Have a Negative Effect on a Credit

question 54

Multiple Choice

Which of the following will have a negative effect on a credit history?

• A)Taking out a car loan with a ten year maturity
• B)Making as many purchases as possible with cash
• C)Never exceeding your credit limit on your credit card
• D)All these options would have a positive effect on credit history.

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Definitions:

Discounted Note

A promissory note issued at a price lower than its face value that promises to pay the holder the full face value at maturity.

Journal Entry

A record in accounting journals that details a business transaction, including information about debits and credits to various accounts.

Overdue Account Payable

An obligation or debt that a company has not paid by its due date.

Fiscal Year

A 12-month period that a company uses for accounting purposes and preparing financial statements.