ABC Tools received goods or services from a supplier and agrees to pay for them at a later date.This arrangement is called

A) a short-term loan.
B) a repurchase agreement.
C) trade credit.
D) commercial credit.

Trade Credit

Credit extended by suppliers in which the buyer agrees to pay for goods and services received now at a later date.

Short-Term Loan

a borrowing arrangement designed to provide funds for a short period, typically less than a year, and is used for immediate financial needs.

Supplier

An individual or company that provides goods or services to another entity, typically as part of a supply chain.