Question

On April 25, Foreman Electric installs wiring in a new home for $3500 on account. What does "on account" mean in this context?

a) Cash payment at the time of service
b) Deferred payment at a later date
c) Payment through an online platform
d) Payment made by check

Answer 1

On account means that the payment for the installation is deferred and will be made at a later date.

Step-by-step explanation:

'On account' means that the payment for the installation is deferred and will be made at a later date. Instead of making an immediate cash payment, the customer will owe the amount to Foreman Electric and will need to pay it off in the future. This is a way for customers to receive services now and pay for them later.