Davis is planning to buy a bike . he has the full amount in his bank account. he does not want to pay any interest on his purchase. which option can davis use when making a purchase? a. use a debt card only b. use a credit card only c. use a debit card, or use a credit card and pay the balance in full when the bill arrives d. use a debit card, or use a credit card and make payments over the next few months

David should use a debit card only. He has the full amount in his bank account already, and debit cards use the money from the person’s bank account when carrying out a transaction. Unlike credit cards, debit cards don’t add interest to purchases.

The correct answer is A, Use a debit card only.

Explanation:

Davis has the full amount in his account which is required to buy a bike and he doesn't want to pay interest on his purchase. So he must use his debit card to make the purchase. In this way, the amount will be directly deducted from his bank account and he won't have to pay any interest. If he chose to use credit card for the payment, he would have to pay interest on the purchase. So when he has the full amount in his bank, the debit card is the best option to pay for the purchase without deducting any interest.

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total

the answer is a.

by: nicholas dooley