_____ is granted by suppliers when they ship materials, parts, or goods to a firm without requiring payment at the time of delivery.
A) Revolving credit agreement
B) Commercial paper
C) Trade credit
D) Promissory note

Question

Quizplus · Accepted Answer

Trade credit is the granting of credit by a supplier to a customer, giving the customer the ability to delay payment for goods or services received. This is a common form of short-term financing and can help a company manage their cash flow. The other options listed, revolving credit agreement, commercial paper and promissory note, are all forms of financing but do not specifically relate to the granting of credit by a supplier.

_____ Is Granted by Suppliers When They Ship Materials, Parts