Future Business Leaders of America (FBLA) Accounting Practice Test

Which document entitles a charge customer to purchase merchandise on credit?

1. Invoice

2. Sales Receipt

3. Credit Card

4. Cash Register Tape

The correct answer is: Credit Card

The document that entitles a charge customer to purchase merchandise on credit is the credit card. When someone uses a credit card, they are essentially utilizing a line of credit extended to them by the card issuer. This allows the customer to buy goods or services without needing to pay cash upfront, agreeing instead to pay the amount charged later, typically with interest if not paid in full by the due date. The other options serve different purposes in the sales process. An invoice is a document notifying a customer of amounts owed, usually for credit-based sales, but it does not itself provide the ability to make a purchase on credit. Similarly, a sales receipt is proof of payment for goods purchased, generally reflecting a cash transaction. Cash register tape is a record of transactions processed through a cash register, summarizing sales but lacking the credit functionality unique to a credit card. Thus, the credit card stands out as the correct answer, as it specifically enables credit purchases.