When a seller allows a buyer thirty to sixty days to pay for a purchase, the sales arrangement is called _____.
A) a bank loan
B) trade credit
C) a promissory note
D) equity financing
E) None of the above is correct.

Question

Quizplus · Accepted Answer

When a seller allows a buyer thirty to sixty days to pay for a purchase, it is referred to as trade credit. It is a common practice in business-to-business transactions and allows the buyer to defer payment while still receiving the goods or services needed for their business operations. Options A, C, and D are not applicable in this context.

When a Seller Allows a Buyer Thirty to Sixty Days