Asked by McGwire Midkiff on May 08, 2024
Verified
_____ is the credit extended by suppliers for the purchase of their goods and services.
A) Commercial paper
B) Trade credit
C) Line of credit
D) Commercial certificate of deposit
E) Marketable security
Line of Credit
A flexible loan from a bank or financial institution that offers a borrower the ability to draw funds as needed, up to a specified limit.
- Acquire knowledge on how trade credits and lines of credit function as financial instruments.
Verified Answer
RW
Renlyn WilsonMay 09, 2024
Final Answer :
B
Explanation :
Trade credit is the credit extended by suppliers to their customers, allowing them to purchase goods or services and pay for them at a later date.
Learning Objectives
- Acquire knowledge on how trade credits and lines of credit function as financial instruments.