Which Statement Best Describes Trade Credit (Accounts Payable)

question 23

Multiple Choice

Which statement best describes trade credit (accounts payable) ?

• A) It is extended by suppliers.
• B) It is financed on trade debit account cards.
• C) It has higher interest charges than credit cards.
• D) It is a product on consignment that is paid for when used.

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Definitions:

Annual Report

A comprehensive report on a company's activities and financial performance throughout the preceding year.

U.S. Stock Exchange

The U.S. Stock Exchange refers to any of the various stock exchanges operating in the United States where stocks of publicly held companies are bought and sold, such as the New York Stock Exchange (NYSE) and NASDAQ.

Comparability Differences

Variations that arise when comparing financial information due to different accounting policies or frameworks.

Disclosure Differences

Variabilities that arise in the way financial information is presented in the financial statements, primarily due to differences in accounting standards or interpretations of those standards.