True/False
Indicate whether the sentence or statement is true or
false.
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1
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An Open Charge Account is an account where purchases can be charged at any time
but at least part of the debt must be paid each month.
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Multiple Choice
Identify the letter of the choice that best
completes the statement or answers the question.
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1
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Anyone who buys on credit or receives a loan is known as a......
a | debtor | b | creditor | c | character | d | credit
references |
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2
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Which is not a type of credit as discussed in class?
a | loan credit | b | trade credit | c | charge credit | d | sales
credit |
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3
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Anyone who sells on credit or makes a loan is known as a.....
a | debtor | b | creditor | c | character | d | credit
reference |
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4
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Which type of credit is used by a business when it receives goods from a
wholesaler and pays them at a later specified date?
a | loan credit | b | trade credit | c | charge credit | d | budget
credit |
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5
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Which is not considered to be one of the three ‘C’s’ of
credit?
a | capacity | b | character | c | capital | d | compliancy |
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6
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Credit is......
a | the money paid for the use of money. | b | a business or individual from whom you have
received loans in the past. | c | the planned protection provided by sharing
economic loss. | d | the privilege of using someone else’s money for a period of
time. |
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7
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When looking at the three ‘C’s’ of credit, which one refers to
your ability to pay a debt when it is due?
a | capacity | b | character | c | capital | d | compliancy |
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8
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Which is not a type of charge account?
a | open | b | budget | c | revolving | d | bank |
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Completion
Complete each sentence or statement.
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1
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This word refers to your honesty and willingness to pay a debt when it is due.
(spell your one-word answer correctly and do not capitalize)
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