Question

7) Which situation explains how a credit becomes a debt? Question 7 options:

A)buyer purchases furniture on credit, and then owes a debt to the furniture store.
B) An electronics store extends credit to a buyer, and then owes a debt to the buyer.
C)A mechanic exchanges services with a plumber, and incurs a debt to the plumber.
D) A farmer purchases used equipment in exchange for a share of the crops grown.

Answer 1

The answer is A )buyer purchases furniture on credit, and then owes a debt to the furniture store.

Answer 2

I believe the answer is: A)buyer purchases furniture on credit, and then owes a debt to the furniture store.

A debt is created if the buyer already receive the product from the sellers but still haven't made the full payment required for the product.

This could be seen in a purchase made on credit or services which payment is made at the end of the months.