Which statement concerning trade credit is not true?
A) Credit can be a more convenient method of paying for goods than cash.
B) Trade credit is an important source of finance for most businesses.
C) Trade credit is generally regarded as a 'free' source of finance.
D) A discount of 1% offered for prompt payment of amounts owning to creditors is hardly worth taking.

Question

Quizplus · Accepted Answer

This statement is not true because a discount of 1% may seem small, but it can add up to significant savings over time. It is always beneficial to take advantage of any discounts offered for prompt payment of trade credit.

Which Statement Concerning Trade Credit Is Not True