Which of the following is NOT an advantage of trade credit? Select one: a. Gener

ID: 2640069 • Letter: W

Question

Which of the following is NOT an advantage of trade credit?

Select one:

a. Generally no formal agreements are involved in the extension of trade credit.

b. The cost of forgoing the discount is less than the prime rate.

d. The amount of extended credit expands and contracts with the needs of the firm.

Which of the following statements regarding a line of credit is true?

Select one:

a. The purpose for which the money is being borrowed must be stated by the borrower.

b. A line of credit agreement usually fixes the interest rate that will be applied to any extensions of credit.

d. Such agreements usually cover the borrower's fiscal year.

1.d. The amount of extended credit expands and contracts with the needs of the firm.

2.b. A line of credit agreement usually fixes the interest rate that will be applied to any extensions of credit.

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