Which of the following is granted by suppliers when they ship materials, parts, or goods to a firm without requiring immediate payment?
A) commercial paper
B) trade credit
C) a revolving credit agreement
D) debenture financing

Question

Quizplus · Accepted Answer

Trade credit is a type of credit granted by suppliers to their customers, allowing them to receive materials, parts, or goods without making immediate payment. This credit is usually extended for a short period, such as 30, 60, or 90 days, and is a common practice among businesses. Commercial paper refers to short-term debt instruments issued by corporations, while a revolving credit agreement is a financial arrangement that allows a borrower to continuously access a line of credit. Debenture financing refers to long-term debt issued by companies to raise capital. None of these options is specifically related to suppliers granting credit to their customers.

Which of the Following Is Granted by Suppliers When They