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Ch. 7 Chg Accts & CC
Charge Accounts & Credit Cards
Term | Definition |
---|---|
ACCOUNT STATEMENT | LISTS ALL OF THE ITEMS YOU PURCHASED AND OTHER TRANSACTIONS |
FINANCE CHARGE | INTEREST THAT THE COMPANY CHARGES TO A CREDIT ACCOUNT FOR NOT PAYING THE TOTAL AMOUNT OWED BY THE DUE DATE |
UNPAID-BALANCE METHOD | COMPUTES THE FINANCE CHARGE BASED ON THE PORTION OF THE PREVIOUS BALANCE YOU HAVE NOT PAID |
AVERAGE-DAILY-BALANCE METHOD | COMPUTES THE FINANCE CHARGE BY ADDING ANY NEW PURCHASE TO THE BALANCE AT THE END OF EACH DAY, NEW PURCHASES ARE INCLUDED |
CHARGE ACCOUNT | AN EXISTING LINE OF CREDIT AT THE BUSINESS THAT ISSUED IT |
CREDIT CARD | A CARD THAT AUTHORIZES PURCHASES ON CREDIT |