Which one of the following facilitates easy purchase of goods and services without making immediate payment?

Equity Shares

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Preference Shares

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Trade Credit

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Debentures

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Solution

The correct option is C
Trade Credit

Trade credit facilitates easy purchase of supplies without immediate payment. Such credit appears in the records of the buyer of goods as accounts payable.

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Similar questions

Assuming that the Debt-Equity Ratio is 2 : I, state, giving reasons, which of the following transactions would (I) Increase; (ii) Decrease; (ii.) Not alter the Debt-Equity Ratio :

(i) Issue of new shares (Preference/Equity) for Cash.

(ii) Issue of new shares (Preference/Equity) against purchase of fixed asset.

(iii) Buy-back of its own shares by a Company.

(iv) Issue of Debentures for Cash.

(v) Issue of Debentures against purchase of fixed asset.

(vi) Repayment of Long-term Borrowings.

(vii) Conversion of Debentures into Equity Shares/Preference Shares.

(viii) Sale of a fixed asset at par.

(ix) Sale of a fixed asset at profit.

(x) Sale of a fixed asset at loss.

(xi) Purchase of a fixed asset on a credit of 2 months.

(xii) Purchase of a fixed asset on long-term deferred payment basis.

(xiii) Issue of Bonus Shares.

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

Q. Debt to Equity Ratio of a company is 0.5:1. Which of the following suggestions would increase, decrease or not change it:

(i) Issue of Equity Shares:	(ii) Cash received from debtors:
(iii) Redemption of debentures;	(iv) Purchased goods on Credit?

Q. Which of the following securities can be forfeited for non-payment of allotment or call money?
(I) Equity Shares
(II) Equity Shares, Preference Shares
(III) Preference Shares, Equity Shares & Debentures
(IV) Debentures
Select the correct answer from the options given below -

Q. Which of the following security can be forfeited for non-payment of allotment or call money?
(I) Equity Shares
(II) Equity Shares, Preference Shares
(III) Preference Shares, Equity Shares & Debentures
(IV) Debentures
Select the correct answer from the options given below :-

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Which one of the following facilitates easy purchase of goods and services without making immediate payment?

The correct option is C Trade Credit Trade credit facilitates easy purchase of supplies without immediate payment. Such credit appears in the records of the buyer of goods as accounts payable.

The correct option is C
Trade Credit

Trade credit facilitates easy purchase of supplies without immediate payment. Such credit appears in the records of the buyer of goods as accounts payable.