Explain Why Companies Sell on Account and Identify the Additional

question 41

Short Answer

Explain why companies sell on account and identify the additional costs that result from this decision.

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Definitions:

Contract

A legally enforceable agreement between two or more parties, typically involving the exchange of goods, services, money, or promises.

Court

A governmental body authorized to adjudicate legal disputes, interpret laws, and administer justice.

Basis

The underlying support or foundation for an idea, argument, or process.

Sue

To initiate legal proceedings against an individual or entity in order to seek redress or enforce a right.