Earl is a contractor and is scheduled for a large project this month. In order to prepare for the​ project, Earl has compiled a list of the supplies he will need. Earl has made a deal with his supplier to purchase the necessary items directly from the supplier when he needs them and with delayed payment. Which of the following describes what deal Earl has set up with his​ suppliers?

Earl is a contractor and is scheduled for a large project this month. In order to prepare for the​ project, Earl has compiled a list of the supplies he will need. Earl has made a deal with his supplier to purchase the necessary items directly from the supplier when he needs them and with delayed payment. Which of the following describes what deal Earl has set up with his​ suppliers?

Earl is a contractor and is scheduled for a large project this month. In order to prepare for the​ project, Earl has compiled a list of the supplies he will need. Earl has made a deal with his supplier to purchase the necessary items directly from the supplier when he needs them and with delayed payment. Which of the following describes what deal Earl has set up with his​ suppliers?



A. Unsecured loan

B. Trade credit

C. Collateral

D. Debenture

E. Compensating balance



Answer: B. Trade credit


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