Where a manufacturer doesn’t collects money from wholesalers in exchange for goods produced is referred to as
-
A.
charge account -
B.
trading checks -
C.
trade credit -
D.
I owe you
Correct Answer: Option C
Explanation
Trade credit is the credit extended to you by suppliers who let you buy now and pay later. Any time you take delivery of materials, equipment or other valuables without paying cash on the spot, you’re using trade credit.