Asked by Abdul Rahman Aljajah on Apr 29, 2024
Verified
Trade credit is a major source of short-term financing.
Trade Credit
The extension of credit by a supplier to their customer, allowing the customer to purchase goods or services and pay the supplier at a later date.
Short-Term Financing
A type of funding intended to meet immediate and temporary financial needs of a business.
- Recognize the significance of trade credit in short-term financing.
Verified Answer
ML
Maria LozanoApr 30, 2024
Final Answer :
True
Explanation :
Trade credit is a form of short-term financing where suppliers allow businesses to buy now and pay later, making it a major source of short-term funding for companies.
Learning Objectives
- Recognize the significance of trade credit in short-term financing.