When Customers of an Equipment Manufacturing Unit Buy Equipment on Credit

question 42

Multiple Choice

When customers of an equipment manufacturing unit buy equipment on credit and then delay making payments, they receive a bill from a collection agency. What relationship does the collection agency have with the manufacturer?

• A)Trade credit
• B)Revolving credit agreement
• C)Factoring
• D)Short-term bank loans

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Definitions:

Fat Cells

Cells that specialize in storing energy in the form of fat, also known as adipocytes, playing key roles in metabolism and energy balance.

Insulin

A substance secreted by the pancreas that controls levels of blood sugar by helping glucose absorption into the body's tissues.

Appetite

The desire to eat food, felt as hunger, which can be influenced by physiological, psychological, and environmental factors.

Taste Buds

sensory organs located on the tongue, responsible for the perception of taste, including sweet, sour, salty, bitter, and umami flavors.