When credit is granted to another firm this gives rise to a(n):
A) accounts receivable and is called a consumer credit.
B) credit due and is called an installment note.
C) accounts receivable and is called trade credit.
D) trade receivable and is called an installment note.

Question

Quizplus · Accepted Answer

When credit is granted to another firm, it results in an accounts receivable for the firm that provided the credit. This type of credit is specifically referred to as trade credit, as it is extended from one business to another rather than to a consumer.

When Credit Is Granted to Another Firm This Gives Rise