Question

Credit terms are terms for a.when payments for merchandise are to be made with cash. b.when the payments for merchandise are to be made. c.when the returns of merchandise are to be made. d.when inventory is purchased.

Answer 1

Answer: b.when the payments for merchandise are to be made.

Step-by-step explanation:

Credit terms refers to the payment terms which are mentioned on the invoice when a good is bought.

Credit terms are terms for when payments for merchandise are to be made. Credit Terms are made during sales on account. The credit term shows the discount rate tahts offered to the costumer and the time limit that the creditor is expected to pay.