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Home > QFINANCE Dictionary > Definition of credit sale

Definition of

credit sale

Finance

sale for which buyer can pay later a sales transaction by which the buyer is allowed to take immediate possession of the purchased goods and pay for them at a later date

Recommended Further Reading (Term count)
  • Murabahah Sale Instruments and Their Applications
    This checklist describes murabahah sale instruments, where a buyer purchases items at an agreed profit margin, avoiding riba.
  • Capital Structure: Implications
    by John C. Groth
    A tax environment that allows for the deduction of interest charges, but not the deduction of dividends, results in an optimal capital structure for a company. The optimal structure results in a lower weighted cost of capital (WCOC) for reasons examined in the article, Capital Structure: Perspectives. This article examines the implications of capital structure, and some of the key factors that influence capital structure.
  • Days Sales Outstanding
    A company’s average collection period, or the average number of days it takes a company to convert its accounts receivable into cash. Commonly referred to as DSO, it is also called the collection ratio.
  • Accounts Receivable Turnover
    The number of times in each accounting period, typically a year, that a company converts credit sales into cash.

Definitions of ’credit sale’ and meaning of ’credit sale’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’credit sale’ and other financial terms with our online QFINANCE Financial Dictionary.

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