when a buyer makes a down payment in the year of sale and then agrees to pay the remainder of the sale proceeds over a period of time, the arrangement is referred to as a(n)

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01-12-2022
Business

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when a buyer makes a down payment in the year of sale and then agrees to pay the remainder of the sale proceeds over a period of time, the arrangement is referred to as a(n)

Sagot :

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nd5905418 nd5905418 · Answer 1 · 2022-12-06T01:08:58-05:00

When a buyer makes a down payment in the year of sale and then agrees to pay the remainder of the sale proceeds over a period of time is referred as Trade Credit.

What is Trade Credit?

Trade credit is an arrangement in which a customer can purchase goods without paying cash up front, and paying a supplier at a later scheduled date.

Trade credit can be thought of as a type of 0% financing, increasing a company's assets while deferring payment for a specified value of goods and services to some time in the future and requiring no interest to be paid in relation to the repayment period.

Learn more about trade credit here:

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when a buyer makes a down payment in the year of sale and then agrees to pay the remainder of the sale proceeds over a period of time, the arrangement is referred to as a(n)

Sagot :

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