Mogul Gaming negotiates a written contract with its main supplier to pay half of its invoice within 30 days and the other half within 90 days. This agreement is most likely ________, a form of ________.
A) a promissory note; trade credit
B) line of credit; secured loan
C) commercial paper; trade credit
D) a promissory note; transaction loan
E) revolving credit agreement; unsecured loan

Question

Quizplus · Accepted Answer

The agreement described is a promissory note, which is a written promise to pay a specified amount of money at a future date, and it involves trade credit, as it is an arrangement to buy goods or services on account, paying the supplier at a later date.

Mogul Gaming Negotiates a Written Contract with Its Main Supplier