describes the short-term financing available to firms that buy merchandise from their suppliers and are not required to pay for their purchase until some future date.
A)Revolving credit
B)Factoring
C)Secured credit
D)Trade credit

Question

Quizplus · Accepted Answer

Trade credit is the short-term financing available to firms that buy merchandise from their suppliers and are not required to pay for their purchase until some future date. This type of credit allows businesses to acquire inventory without having to immediately pay for it, which can be helpful for cash flow management.

Describes the Short-Term Financing Available to Firms That Buy Merchandise