Lockheed Martin purchased raw materials to produce Black Hawk helicopters. Their payment term is 30 days. Which of the following has Lockheed utilized?
A) commercial paper
B) line of credit
C) secured loan
D) trade credit

Question

Quizplus · Accepted Answer

Lockheed Martin has utilized trade credit, which is the opportunity to purchase goods or services on credit with a predetermined payment term, in this case, 30 days.

Lockheed Martin Purchased Raw Materials to Produce Black Hawk Helicopters