Asked by
Thataeng Gabriel Mohulatsi
on Nov 07, 2024Verified
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.
Verified Answer
LW
Learning Objectives
- Analyze the relationship between credit policy and firm financing needs.
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