When a firm receives goods or services from a supplier and agrees to pay for them at a later date,this arrangement is called _____.

Question

Quizplus · Accepted Answer

Trade credit is an arrangement where a supplier provides goods or services to a buyer with an agreement to pay for them later. It is a common form of financing used by businesses to manage cash flow and fund operations. Trade credit terms may vary, but typically include a due date or payment deadline, and may also include discounts for early payment or penalties for late payment. Choices A, B, and D do not accurately describe this arrangement.

When a Firm Receives Goods or Services from a Supplier