The important method of financing that occurs when a company finances its purchases through credit terms offered by their suppliers is best described as:
A) bank loan.
B) trade credit.
C) commercial paper.
D) factor arrangement.
E) bankers' acceptance.

Question

Quizplus · Accepted Answer

Trade credit is a form of short-term financing where a company purchases goods or services from a supplier and is allowed to pay for them at a later date, effectively receiving credit from the supplier.

The Important Method of Financing That Occurs When a Company