What is trade credit?
A) the credit that a firm extends to its customers
B) the amount a firm is owed by its customers who have received goods and services but have not yet paid for them
C) the percentage discount offered to a customer who opts to pay their account early
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 purchase goods or services and pay for them at a later date.

What Is Trade Credit