Question

A credit limit is:

a. The minimum credit amount a customer needs to be offered

b. The dollar ceiling amount that cumulative credit can reach

c. At what level the company decides to start credit collections

14. Dun and Bradstreet is a (an):

1. Accounting firm that does corporate audits
2. Law firm that works with the SEC
3. Information source about businesses

15. A cash discount is available when the net date of 30 days for the payment is reached.

a. True        b. False

Answer 1

Credit limit is the maximum amount of credit a financial institution can give to the customers.

a. incorrect. It is not minimum but maximum which can be availed byt he customer.

b. correct. The maximum cumulative credit which can be availed by customer is the credit limit.

c. credit limit is not related to credit collections.

14.

a. incorrect. D&B company does not do corporate audits.

b. Incorrect. It is not a law firm.

c. correct. It provides information about businesses.

15.

False. Cash disccount is not available after net date of 30 days.

Comment in case of any query. Thumbs up would be highly appreciated. Thanks.