The Rationale Behind Offering Customers Credit Is

question 160

Multiple Choice

The rationale behind offering customers credit is:

• A)Permitting customers to pay with credit cards or on credit makes it easier for them to buy,and it also attracts new customers.
• B)Offering customer's credit helps with the firm's cash flow position.
• C)Offering customer's credit helps match revenues with expenses for the same time period.
• D)Permitting customers to pay with credit cards or on credit forces a company to rely less on accounts receivables and more on accounts payables.

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Definitions:

Mid-Atlantic Ridge

A continuous underwater mountain range in the Atlantic Ocean, formed by tectonic plate divergence.

Submarine Mountain

An underwater mountain, formed by volcanic activity or tectonic movements, rising significantly above the surrounding seafloor.

Meteorites

Solid pieces of debris from objects such as asteroids or comets that have made their way through the Earth's atmosphere and landed on the surface.

Continental Drift

The hypothesis, now a scientific theory, that the Earth's continents have moved over geological time relative to each other, appearing to have "drifted" across the ocean bed.