2. Upon graduating BBA, in one year

Q: Define letter of credit.

A: Credit refers to the concept, is defined as the financial agreement where the borrowers receive…

Q: Increasing interest expense will have what effect on EBIT?

A: EBIT stands for Earnings before Interest and Tax, the amount earned by the company from the…

Q: explain the inherent risks associated with prepaid expenses and deferred charges.

A: A deferred charge is the same as a long-term prepaid expense, which is an expense made for an…

Q: Explain the other sources of credit

A: The term credit can be defined as the agreement between two parties involving a borrower and a…

Q: Why is it important to set a credit limit?

A: Solution:- Given, Credit Limit :- The term credit limit refers to the maximum amount of credit a…

Q: explain two functions of the credit uniom

A: A credit union is established as a not-for-profit organization (NPO). It consists of members who…

Q: ESSAY on "Using your Credit Card/s as a Leverage"

A: In today's fast-paced world, credit cards have become an integral part of our financial lives. They…

Q: Briefly described the differences between a credit, charger , debit & smart card

A: Credit card is the types of plastic cards which are generally issued by the banks for purchasing…

Q: Compare secured and unsecured credit in your own words. Cite an example for each. You may place your…

A: Credit refers to the amount of money given by the lender to the borrower in return for which the…

Q: Why loan support is needed, explain.

A: Loans are any type pf financial credit facility in which a sum of money is lent by one party to…

Q: Illustrate some examples in the area of loan transactions?

A: Loan transactions Accounting: Loans refer to one of the best options for financing. Every business…

Q: Define credit standards

A: The set of standards that a firm or bank uses to choose if an advance or credit line is to be…

Q: What is a sale on credit and why it is needed? Give three examples?

A: Sale on Credit: A sale on credit is revenue earned by a company when it sells goods and allows the…

Q: Allows purchases beyond credit limit. This is referred to

A: Credit purchase limit terms are used in credit card cases. If any user of a credit card makes a…

Q: Where i can used credit union

A: Whenever a group of people collect deposits and use those deposits to give loans, it is known as…

Q: When can we used credit union?

A: Credit unions are the institutions or co-operatives that give banking services. These unions are…

Q: Does leasing lead to increased credit availability?

A: Answer: Leasing is a mechanism by which the company may receive such capital assets for use, through…

Q: The problems of credit extension and give examples and illustrations

A: The term credit extension refers to the process of making and renewing the loan, letter of credit,…

Q: How can you have a good credit history?

A: Good credit history can be maintained by complying with the terms and conditions and ensuring that…

Q: Define credit enhancement

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: savings account more liquid than a CD

A: A CD or certificate of deposit and savings account are two types of are offered by banks and…

Q: What is the major advantage of using a fee-only financialplanner?

A: There are different types of financial planners to help investors plan their finances. Majorly,…

Q: Which of the following is not a vendor transaction? Multiple Choice Order products Pay bills Make…

A: Vendor are the the one which does the Sales of Products and/or provide the services to another…

Q: Letter of credit involves: 3 parties 1 party only 2 parties 4 parties

A: Letter of credit refers to the instrument that guarantees the payment for the goods or services…

Q: Define Deferred Payments.

A: Liabilities:   Liabilities are referred to as the obligation of the business towards the creditors…

Q: Explain mezzanine loan?

A: Mezzanine financing is a blend of both debt and equity financing. It is a way for firms to raise…

Q: Explain Loan Closing Costs and Effective Borrowing Costs?

A: Closing costs are the uses that buyers and vendors ordinarily pay to total a real estate deal, over…

Q: desrcibe credit card security and why its imporant

A: Credit Card Security: A form of credit card known as a secured credit card is one that requires the…

Q: In your own definition what is credit and what is collection

A: The businesses tend to conduct their operations not only on a cash basis but also on a credit basis.…

Q: Sales of pipes.

A: As per standard accounting practices , a revenue is recognised as and when it…

Q: What increases your credit score

A: Credit scores are given by banks to customers.Credit scores are very important to get credit from…

Q: The revenue account is not affected when a credit sale is made. A. True B. False

A: Credit Sale: It implies to the sale of products and services to the customer and the customer does…

Q: What is noncommited and committed line of credit?

A:

Q: EXplain the loan structuring?

A: Loan restructuring is designing of loan according to the requirements of the borrower and also to…

Q: Sources of credit with examples and explanations

A: Credit refers to an agreement made between 2 parties where one party lends some money or item to…

Q: To increase Supplies Expense a debit entry is needed. Select one: True O False

A: Lets understand the basics.Supplies expense is required to record at year end using adjusting…

Q: what is not needed to produce a payment to a vendor

A: Accounts payable represents the due amounts which the corporation has to pay in the future either…

Credit card

A credit card is provided by financial institutions or banks, which permits a person to borrow money on a preapproved limit for purchases on a credit basis. The credit limit is decided by the institution and bank which issues a credit card depending on the person’s credit score and income. A cardholder can use the card for credit purchases, a balance transfer, cash advances.