A line of credit does not resemble a personal credit card
Indicate whether the statement is true or false.
Answer: FALSE
Explanation: A line of credit requirement might be that the line of credit remains at a zero balance for a clean-up period. This is similar to a personal credit card in that it gives you a pre-arranged borrowing amount up to a maximum. It is also similar to a credit card in that you have to make periodic payments that in a sense "clean up" the account so your loan does not get out of hand. Like a line of credit, a personal credit card loan charges fees for the use of the money. With lines of credit, this fee (interest rate) typically floats, based on the prevailing market interest rates, whereas your credit card rate is fixed. Thus, a line of credit DOES RESEMBLE a personal credit card, despite some differences.
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Consider the estimated aggregate demand for a company’s ski product line for the upcoming year in the following table. Calculate the planned monthly production level using level production strategy.
A. 4,000
B. 5,000
C. 4,500
D. 5,500
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The sales revenue of a merchandiser amounted to $25,000, sales returns and allowances amounted to $2,400, and sales discounts amounted to $600. The merchandiser uses a perpetual inventory system
The first entry in the closing process would include ________. A) a credit to Income Summary for $25,000 B) a credit to Income Summary for $22,600 C) a debit to Income Summary for $2,400 D) a debit to Income Summary for $24,400