Trade credit is considered what type of loan?
A) when a firm owes money to a supplier.
B) when a firm owes money to a customer.
C) when a firm owes money to a bank.
D) all of the answers are true.

Question

Quizplus · Accepted Answer

Trade credit is a type of credit extended by suppliers to buyers for the purchase of goods and services. It is a form of short-term loan that is typically interest-free, and allows the buyer to defer payment for a period of time.

Trade Credit Is Considered What Type of Loan