Answer:
True
Explanation:
One of the ways a business is financed is through credit. It is an arrangement where a supplier allows a business customer to purchase a product or enjoy a service now with payment deferred to a later date.
If the transaction is in respect of goods an services consumed by the business for its operation. it is called trade credit.
For example, a business can purchase an item of raw material from its supplier today on account with the agreement to settle its bill at a future date.
Hence, the statement If a business buys something on credit, this means they can use it now and pay for it at a later date is true
True
