When sales are made without the accompaniment of a formal debt contract, the sales are said to be on:
A)Conditional sale terms
B)Open account
C)Trade credit
D)Sight draft

Question

Quizplus · Accepted Answer

Open account refers to a system in which a buyer can purchase goods or services from a seller and pay for them at a later date without a formal debt contract. This is commonly used in business-to-business transactions and is also known as "buying on credit." Choice A (conditional sale terms) refers to a type of sale where the transfer of ownership of goods depends on certain conditions being met, such as the buyer making a certain number of payments. Choice C (trade credit) is a generic term that can refer to any form of credit offered in a business transaction. Choice D (sight draft) is a type of financial instrument that is used in international trade to secure payment for goods or services.

When Sales Are Made Without the Accompaniment of a Formal