What is 'trade credit'?
A)the amount a firm is owed by its customers who have received goods and services but have not yet paid for them
B)the percentage discount offered to a customer who opts to pay their account early
C)the credit that a firm extends to its customers
D)the amount that a firm owes its suppliers for goods which it has received but for which it has not yet paid

Question

Quizplus · Accepted Answer

Trade credit is the credit that a firm extends to its customers, allowing them to receive goods or services without making immediate payment. This credit is typically offered by suppliers and vendors to businesses as a way to build relationships with customers and encourage repeat business.

What Is 'Trade Credit