Chapter 6 - : a method in which credit card companies use...

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Chapter 6: Charge Accounts and Credit Cards 1. charge accounts and credit cards : systems of buying in which you receive goods and services now and spread the payments, along with finance charges, if any, over a period of time. 2. sales receipt : this is the paper received when you use a charge card. It shows your name and account number, the price of each item you purchased, the sales tax, and the total purchase price. 3. statement : a monthly listing of all transactions processed by the closing date for that month. 4. finance charge : is interest that is charged for delaying payment. 5. previous-balance
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Unformatted text preview: : a method in which credit card companies use to compute the finance charge. The finance charge is based on the amount owed on the closing date of your last statement. 6. periodic rate : is the monthly finance charge rate. 7. unpaid-balance : the finance charge is computed based on that portion of the previous balance that you have not paid. 8. average-daily-balance : is the average of the account balance at the end of each day of the billing period. New purchases posted during the billing period are not included when figuring the balance at the end of the day....
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This note was uploaded on 01/24/2012 for the course HUM 9999 taught by Professor Variousprofessorslisted during the Summer '06 term at Abilene Christian University.

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