What is it called when a company takes delivery of goods but pays for them at a later time?
A) collateral
B) trade credit
C) a term loan agreement
D) a charge account

Question

Quizplus · Accepted Answer

When a company takes delivery of goods but pays for them at a later time, it is called trade credit. This is a common practice in business transactions where the seller allows the buyer to defer payment for a certain period of time. It is a form of short-term financing and helps buyers manage their cash flow.

What Is It Called When a Company Takes Delivery of Goods