PRC-3 · Chapter 4 · Question 46 of 65
A supermarket receives daily shipments of milk from a dairy farm, but the contract allows the supermarket 30 days to pay the invoices. This short-term financing mode is known as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Trade credit
Explanation
Trade credit is an arrangement where a supplier allows a business to receive goods immediately and pay for them at a later date.
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