Chapter 1

Question 1

Is an arrangement to receive cash, goods, or services now and pay for them later.

Answer 1

Credit

Question 2

Is defined as a transaction involving the transfer of goods, services, funds, property, or rights, thereby creating an obligation on the part of those who receive them, that must be complied with in the future

Answer 2

Credit

Question 3

The parties are called

Answer 3

Creditor - debtor
Or
Lender - borrower

Question 4

The relationship if the item is goods

Answer 4

Creditor - debtor

Question 5

Services

Answer 5

Creditor - debtor

Question 6

Funds

Answer 6

Lender - borrowee

Question 7

Property

Answer 7

Bailor - bailee

Question 8

The transaction in property are covered by

Answer 8

Commadatum contracts

Question 9

Rights

Answer 9

Lessor - lessee

Question 10

What article says that by the contract of sale one of the contracting parties obligates himself….

Answer 10

Article 1458 of the civil code

Question 11

Whether on a credit arrangement or not, it is the intention of the parties taht both the ownership and possession of goods or services be transferred to the buyer, who must pay for them

Answer 11

Sale

Question 12

Refers to transfer of possession

Answer 12

Delivery

Question 13

Arising out of sale transactions and cash loans

Answer 13

Credit obligations

Question 14

Is consummated by mutual consent and the non payment of rent on due date is certainly not intended by the lessor or owner of the rental property

Answer 14

Credit transaction

Question 15

Time allowance to pay a rental beyond the due date

Answer 15

Grace period

Question 16

If the property is lent out for free

Answer 16

Contract of rent or lease

Question 17

Is always recommended, provided, of course, that it is feasible primarily in terms of the companys financial resources and the adaptibility and adjustability of its employees to the recommended approach

Answer 17

Systems approach

Question 18

Should be capable of being handled with ease by the employees

Answer 18

Credit and collection system

Question 19

Problems are looked at not on a single incident basis, but in relation to thw total system

Answer 19

System approach

Question 20

Stricter credit criteria would always result in

Answer 20

Low sales

Question 21

Loosening up of the credit criteria would almost always results in

Answer 21

Higher sales

Question 22

Are true losses, loss of the finance charges and fully or partially, the cost of the merchandise

Answer 22

Uncollectible finance income