Juxiplex, an Electronics Company, Introduced a New Range of Smart

question 3

Multiple Choice

Juxiplex, an electronics company, introduced a new range of smart phones. It bought the required raw materials from Gunplet Inc. without making payment at the time of purchase. Instead, Gunplet Inc. allowed Juxiplex to pay within fifteen days from the time of purchase. Which of the following short-term financing options was used by Juxiplex in the given scenario?

• A) Factoring
• B) Trade credit
• C) Short-term bank loans
• D) Commercial paper

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Definitions:

Chargeout Rate

The price per unit of time charged for services rendered, often used in professional settings or service-oriented businesses.

Non-profit Entities

Organizations that operate for charitable, educational, cultural, or social welfare purposes rather than for profit.

Service Costing System

An accounting method used for establishing the cost associated with providing a service.

Complexity

Refers to the degree of intricacy, difficulty, or multifaceted nature of a task, system, or situation, which can affect manageability and understanding.