What Effect Can Selling on Credit Have on Your Business

question 46

Multiple Choice

What effect can selling on credit have on your business?

• A) Reduce assets
• B) Decrease accounts payable
• C) Delay cash inflows
• D) Reduce liabilities
• E) Increase inventory

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Definitions:

Reactive Intermediate

Transitory species that are formed during a chemical reaction and participate in further reaction steps until the final products are produced.

Oxidation

The process where a substance undergoes an increase in its oxidation state, often associated with the addition of oxygen or removal of hydrogen.

Reduction

A chemical process where a molecule, atom, or ion acquires electrons or undergoes a reduction in its oxidation state.

Oxidation

A chemical reaction that involves the loss of electrons by a molecule, atom, or ion.