Which of the following is an accurate statement about open-book accounts?
A) They are regulated by the Truth in Lending Act.
B) They are accounts with only one charge.
C) The patient and physician sign an agreement for payment in more than one installment.
D) The last date of payment or charge for each illness is used as the starting date for determining the time limit on that specific debt.
E) The statute of limitations does not apply to open-book accounts.

Question

Quizplus · Accepted Answer

Open-book accounts are characterized by a running or continuous dealing between parties, where the balance is subject to frequent changes due to charges and payments. The last date of payment or charge is indeed used as the starting point for determining the statute of limitations on the debt, making option D correct. This is because each new charge or payment can potentially reset the statute of limitations, depending on the jurisdiction's laws.

Which of the Following Is an Accurate Statement About Open-Book