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Thataeng Gabriel Mohulatsi
on Nov 07, 2024

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When ABC Co. makes a sale of inventory on credit to XYZ Co., then cash is paid to ABC and a payable is created for ABC.

Payable

Amounts owed by a company to its creditors or suppliers that are due to be paid within the near future.

Inventory On Credit

A business practice where goods are acquired without immediate payment, with the understanding that payment will be made at a later date.

  • Analyze the relationship between credit policy and firm financing needs.
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Lejhanna WilliamsNov 14, 2024
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