A service available to charge customers whereby purchases are not billed to the customer until later is called

• A. Deferred Billing
• B. Service Credit
• C. Layaway
• D. Open-end Credit

Answer: (A)

The concept being tested is delaying payment for purchases. Deferred billing means you can receive goods or services now and be billed at a later date, which matches the description precisely. Layaway involves paying upfront to hold an item and doesn’t involve billing later for the purchase itself. Open-end credit covers a revolving line of credit used over time and billed after the fact, but it’s broader than the single-service idea of delaying the billing for a specific purchase. Service credit isn’t a standard term for this practice. So, deferred billing is the best fit.