Which of the following statements is true of trade credit?
A) It is also called a revolving credit agreement.
B) It is a requirement lenders impose on borrowers as a condition of loans.
C) It is granted by suppliers after evaluating the creditworthiness of a firm.
D) It is the part of a firm's net income that the firm reinvests.

Question

Quizplus · Accepted Answer

Trade credit is a type of credit extended by suppliers to their customers, allowing them to purchase goods or services and pay for them at a later date, typically after evaluating the creditworthiness of the firm.

Which of the Following Statements Is True of Trade Credit