Methods of Buying and Selling on Credit

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What you'll practise (50 questions)

1. What is installment selling? (b) What is the difference between Hire purchase and deferred payments? (c) What are the advantages and disadvantages of installment selling to: i) Sellers ii) Consumers
2. What are the advantages and disadvantages of credit sales?
3. What is barter trade? (b) What are the advantages and disadvantages of barter trade?
4. What is the difference between a credit note and a debit note?
5. What is a trade discount?
6. What is a cash discount?
7. What is the difference between a trade discount and a cash discount?
8. What is a credit application form?
9. What is credit buying?
10. What is credit selling?
11. What is hire purchase?
12. What is deferred payment?
13. What is the difference between hire purchase and deferred payment?
14. What is a credit sale?
15. What is a cash sale?
16. Which of the following is a method of credit buying?
17. What is an installment payment?
18. What is a down payment?
19. What is the advantage of buying on credit?
20. What is a disadvantage of buying on credit?
21. What is a credit agreement?
22. What is a credit period?
23. What is the difference between a trade credit and a consumer credit?
24. What is an open account in credit terms?
25. What is creditworthiness?
26. What is a credit reference?
27. What is a bad debt?
28. What is the advantage of selling on credit to a seller?
29. What is the disadvantage of selling on credit to a seller?
30. What is a promissory note?
31. What is a bill of exchange?
32. What is the difference between a promissory note and a bill of exchange?
33. What is a credit card?
34. What is a debit card?
35. What is the difference between a credit card and a debit card?
36. What is a store card?
37. What is a credit limit?
38. What is interest on credit?
39. What is APR (Annual Percentage Rate)?
40. What is a credit sale agreement?
41. What is a conditional sale agreement?
42. What is a repurchase agreement?
43. What is credit insurance?
44. What is the advantage of credit to a business?
45. What is the disadvantage of credit to a business?
46. What is a credit invoice?
47. What is a monthly statement in credit?
48. What is an overdue account?
49. What is the right of repossession in hire purchase?
50. What is the cooling-off period in credit agreements?

Answer each question above to see the correct answer and a full explanation.