Multiple Choice QuestionWhen Jim obtains the needed computer maintenance services from a supplier who agrees to receive payment for those services within two months, Jim is obtaining ______.Multiple choice question.bartering servicesa line of creditdebt financingtrade credit
Question
Multiple Choice QuestionWhen Jim obtains the needed computer maintenance services from a supplier who agrees to receive payment for those services within two months, Jim is obtaining ______.Multiple choice question.bartering servicesa line of creditdebt financingtrade credit
Solution
Jim is obtaining trade credit. This is because trade credit is a type of commercial financing in which a customer is allowed by the supplier to buy goods or services and pay the supplier at a later date. In this case, the supplier is providing computer maintenance services to Jim and allowing him to pay for those services within two months.
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