Which of the following statements is false regarding trade credit?
A) Trade credit is created when a firm uses cash to make purchases from another firm.
B) Trade credit is not usually an interest-bearing asset for the firm granting the credit.
C) Trade credit possesses a degree of default risk.
D) Collection of trade receivables can be sped up by offering discounts.
E) Trade credit is an important source of external financing for Canada firms.
Correct Answer:
Verified
Q339: Considering the 5 C's of credit, what
Q340: Which one of the following occurs during
Q341: A seller who extends credit for a
Q342: Which of the following statements is correct?
A)
Q343: There is a saying in banking that
Q345: Which one of the following groups of
Q346: The length of time for which credit
Q347: An auto windshield is classified as _
Q348: When evaluating the creditworthiness of an individual,
Q349: Which one of the following is NOT
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents