PRC-3 · Chapter 4 · Question 17 of 65
A manufacturer purchases raw materials in bulk and relies on a common financing method where the supplier allows them 60 days to pay the invoice. What is this called?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Trade credit
Explanation
Trade credit is a short-term, often interest-free financing arrangement provided by suppliers allowing delayed payment for goods.
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