When You Use a Credit Card to Pay Your Tuition

question 101

Multiple Choice

When you use a credit card to pay your tuition,

• A)you've used the credit card as money because it is a means of payment.
• B)the credit card is not money but is an ID card for an instant loan.
• C)the credit card is not money because it involves an electronic transaction.
• D)the credit card is not money because it is not officially issued by the government.
• E)you've used the credit card as money because you received something in return.

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Definitions:

Depletion Expense

The allocation of the cost of natural resources, such as minerals, oil, or timber, over their productive life.

Salvage Value

Salvage value is the estimated residual value of an asset at the end of its useful life, determining how much it can be sold for or disposed of.

Double-Declining-Balance Depreciation

An accelerated depreciation method that doubles the depreciation rate of an asset, causing it to lose value quicker than under traditional linear depreciation methods.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use.