Credit purchase

Definition:

The company buys inventory from another company (the supplier). The company does not pay cash at the time of purchase. The company promises to pay the cash later. The supplier extends an informal, temporary loan to the company. Usually the company pays the cash in one or two months. This transaction increases the asset Inventory and increases the liability Accounts Payable.

Related terms:

Fixed assets

Useful articles:

»	YOU Should Be in Control
»	Psychological Debt
»	Write Reviews to Increase Sales
»	Prescription Before Diagnosis--Collaborative Selling

Rent vs Buy

Determine whether it is a better financial decision to rent or to own a home

Marketing calc

This calculator is designed to help you estimate your return on investment from a marketing campaign

Investment

Provide a guide to possible financial outcomes for the purchase of an investment property

Browse by categories

Accounting	Advertising	Banking
Bankruptcy	E-Commerce	Economics
Finance	Law	Investment
Insurance	Marketing	Real estate
Statistic	Trade	Purchasing

Featured Articles:

Time Management

Basics of Filing

Filing is an effective way to organize your home and office. This article teaches the basics of filing.

Do you look upon filing as drudgery? If so, you are not alone. You don't see peo... [ more... ]

Marketing

Avoiding Administrivia: Moving From Paperwork to Productivity

There are certain universal truths that we accept in life. Kids hate spinach, People hate taxes and sales reps hate paperwork! From expense to call reports, quarterly updates to annual business pla... [ more... ]

Career

Is a Career a Calling or a Choice?

How much of our career path is destiny and how much is free will? In my opinion, it is 50/50. We are given a life map at the beginning of our lives, and there are things we are meant to learn, peop... [ more... ]