A Firm Is Said to Be Extending Net Trade Credit

question 139

True/False

A firm is said to be extending net trade credit when its accounts receivable are less than its accounts payable.

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Definitions:

Tariffs

Taxes imposed by a government on imported or exported goods to regulate trade, and often used to protect domestic industries.

Trade Quotas

Restrictions set by a country on the quantity of goods that can be imported or exported over a specified time period.

Trade Protection

Measures implemented by governments to control the amount of trade across its borders and to protect its economy by regulating the imports and exports of goods and services.

Trade Deficit

A situation that occurs when a country's imports exceed its exports during a given time period.