If a Company Did Not Extend Credit to Customers

question 21

Multiple Choice

If a company did not extend credit to customers:

• A) gross revenue would rise.
• B) costs would rise but so would its revenue.
• C) costs would fall but so would its revenue.
• D) gross profit would rise.

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Definitions:

ADP

Adenosine Diphosphate, a molecule involved in the energy transfer within cells and plays a role in the conversion to ATP.

Phospholipids

A class of lipids that form the primary structural component of cellular membranes, characterized by a hydrophobic tail and hydrophilic head.

Hydrophilic Region

A part of a molecule that has affinity for water and can form hydrogen bonds with water molecules.

Hydrophobic Region

A part of a molecule that is repelled by water and typically soluble in nonpolar solvents.