Question 4 Which of the following is an advantage of using Trade payables for the c C Purchasing goods on credit works like interest-free borrowing for the company. Credit-paying customers may be less favoured by suppliers in terms of uelivery technical support. A business that buys supplies on credit may incur additional administration and a Credit-paying customers may have to pay more for their purchases while cash-pa discounts for immediate cash settlements.

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Question 4 Which of the following is an advantage of using Trade payables for the c C Purchasing goods on credit works like interest-free borrowing for the company. Credit-paying customers may be less favoured by suppliers in terms of uelivery technical support. A business that buys supplies on credit may incur additional administration and a Credit-paying customers may have to pay more for their purchases while cash-pa discounts for immediate cash settlements.

Answer 1

Given the options, A displays the advantage adequately . Hence, The answer is "A. Purchasing goods on credit works like interest-free borrowing for the company.".

Answer 2

## Step1 This question pertains to the topic of trade payables in the area of finance and accountancy. Trade Payables also known as Accounts payable , are short term financial obligations and liabilities of a company. These standout savings which are to made certain to other companies or providers after receiving the service or goods.## Step 2 Choice A claims that using trade payables to purchase goods on credit operates like no-interest borrowing for the company. It's fair since a company gets the benefits of the goods or services instantaneously while delaying the cash payment until due, essentially acting as an interest-free loan.## Step 3 Choice B states that suppliers might favour credit-paying customers less in terms of delivery, quality, and technical support. This could be potentially disadvantageous, but it majorly depends on relations and terms the company shares with supplier## Step 4 Choice C:In the favour of viewpoint where additional administration and interest charges are paid when a firm purchases supplies on credit. This can actually become a potential disadvantage, as using credit might entail additional fees (interest) and paperwork (administration).## Step 5 Selection D claims that customers who pay on credit may end up paying more for their purchases than those who pay in cash immediately, since they miss out on cash discount. This too, like previous options, can act as a disadvantage for using trade payables.# The

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