Explain the Term Usage of Trade

question 54

Essay

Explain the term usage of trade.What happens if there is a conflict between the express terms of the contract and trade usage?

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Definitions:

Cash Cycle

The duration between the outlay of cash for purchasing inventory and the receipt of cash from customer sales, indicating liquidity.

Accounts Payable Period

The mean duration for a company to settle payments with its suppliers and vendors.

Cash Flows

The entirety of capital movements entering and exiting a firm, significantly affecting its financial fluidity.

Controller

An executive role responsible for overseeing the accounting operations within a company, managing financial reporting, budgets, and internal controls.