Which of the following is the practice of one firm selling to another on credit terms?
A) accounts payable
B) accounts receivable
C) barter transactions
D) trade credit

Question

Quizplus · Accepted Answer

Trade credit is the practice of one firm selling goods or services to another firm on credit terms, meaning the buyer will pay at a later date. This is a common form of financing for businesses, as it allows them to purchase necessary goods or services without having to pay upfront. Accounts payable refers to money owed by a company to its suppliers, while accounts receivable refers to money owed to a company by its customers. Barter transactions involve trading goods or services directly, without the use of money.

Which of the Following Is the Practice of One Firm