Final answer:
The time limit for collection in an open-book account does not begin when the account is initiated. It typically starts when the debtor fails to make a payment within the agreed-upon terms.
Step-by-step explanation:
In an open-book account, the time limit for collection does not typically begin when the account is initiated. In legal terms, an open-book account refers to a type of account where a debtor is allowed to purchase goods or services on credit, and the creditor maintains a running account of the transactions.
The time limit for collection usually begins when the debtor fails to make a payment within the agreed-upon terms, such as the due date stated in the credit agreement. It's important to note that the specific time limit for collection may vary depending on the jurisdiction and any applicable statutes of limitations.