Which is the source of finance that is available in the normal course of purchase of goods?

Equity Shares

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Debentures

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Trade Credit

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All of the above

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Solution

The correct option is C
Trade Credit

Trade credit is the credit extended by one trader to another for the purchase of goods and services.

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Similar questions

The cheapest source of finance is

(a) debenture

(b) equity share capital

(d) retained earning

Explain the following source of business finance :

(i) ADR

(ii) Trade Credit

Classify the following into (i) Operating Acivities, (ii) Investing Activities, (iii) Financing Activities and (iv) Cash Equivalents while preparing a Cash Flow Statement:
1. Cash Sales
2. Cash Received from Trade Receivables
3. Purchase of Building
4. Sale of Building
5. Issue of Share Capital or Debentures
6. Buy- back of Equity Shares
7. Dividend Paid
8. Interest paid on Debentures or Long - term Loans by (a) Finance Company (b) Non- Finance Company
9. Cash Purchases
10. Cash paid to trade payables
11. Redemption of Debentures and Preference Shares
12. Repayment of Long - term Loan
13. Office Expenses
14. Selling and Distribution Expenses
15. Manufacturing Expenses
16. Purchase of Goodwill
17. Sale of Patent
18. Purchase of Investments
19. Sale of Investments by (a) Finance Company (b) Non- Finance Company
20. Commission and Royalty received
21. Interest received on Investments by (a) Finance company (b) Non Finance company
22. Dividend received on Shares by (a) Finance Company (b) Non - Finance company
23. Rent Paid
24. Rent received if (a) Company's main business is property business (b) Other business
25. Income Tax Paid
26. Income Tax Refund received
27. Bank Balance
28. Short- term Deposits in Bank
29. Investment in Short - term or Marketable Securities

Q. Trade Credit is a major source of _____ finance for most business whether small or big.

Q. Assertion :Preference shares capital is a more costly source of finance than debentures for profit-earning companies. Reason: Preference dividend is not a charge against profit under the Income Tax Act.

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Which is the source of finance that is available in the normal course of purchase of goods?

The correct option is C Trade Credit Trade credit is the credit extended by one trader to another for the purchase of goods and services.

The correct option is C
Trade Credit

Trade credit is the credit extended by one trader to another for the purchase of goods and services.