Trade credit is created when:

Name: Trade credit is created when:
Brand: Quizplus
Rating: 4.9 (45 reviews)

Question

Quizplus · Accepted Answer

Trade credit is created when companies purchase goods on credit from their suppliers, allowing them to delay payment until a later date. This is a common practice in many industries, especially when firms need to manage their cash flow and maintain adequate inventory levels. The other options, such as customers returning goods or current asset and liability ratios, do not directly relate to the creation of trade credit.

Trade Credit Is Created When