Which of the Following Statements Related to Trade Credit Is

question 25

Multiple Choice

Which of the following statements related to trade credit is true?

• A)Trade credit has an explicit interest cost.
• B)Large firms tend to use trade credit more than small firms.
• C)The total trade credit owed at any point in time is called accounts receivable.
• D)Trade credit arises from the time lag between the receipt of and payment for supplies.

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Definitions:

Contaminated

The state of being impure or polluted by harmful substances, bacteria, or pathogens.

Panic Attack

A sudden onset of intense fear or discomfort, characterized by symptoms like heart palpitations, sweating, and feelings of doom.

Intense Apprehension

A strong feeling of anxiety or fear about something that is happening or might happen.

Agitated

Feeling or appearing troubled or nervous, often resulting in restlessness or aggressive movements.