CIPS L4m4 Ethical And Responsible Sourcing · Free Practice Question Easy
Question 1
When using a 'credit account' payment mechanism, when does a supplier receive payment for the goods?
- A after delivery
- B in advance of delivery
- C when they receive the PO
- D before the order is placed
Reveal correct answer
Correct answer: A
Explanation
In a 'Credit Account' payment mechanism- the supplier receives payment after the goods are delivered, in line with agreed payment terms (which may be 30 days or something like that).
See p.146 - this is a hot topic for the exam.
Discussion
Think the marked answer is wrong, or have a better explanation? Share it below — comments appear after review.
You must be logged in to post a comment.
