Which of the Following Is a Disadvantage of Selling on Credit

question 26

Multiple Choice

Which of the following is a disadvantage of selling on credit?

• A)Some customers do not pay, creating an expense.
• B)Sales can be made to a more diverse group of customers.
• C)Prices must be reduced when selling on credit.
• D)Profits are increased by making sales to a wider range of customers.

Recognize the importance of research designs and methodologies in studying human development.

Identify the role of cognitive equilibrium in learning and adaptation.

Understand the difference between assimilation and accommodation in cognitive processes.

Recognize the impact of psychoanalytic, behaviorist, and cognitive theories on the understanding of human development.

---

Definitions:

First-In, First-Out

A rephrased definition of FIFO; it's a method of stock valuation assuming that the oldest inventory items are used or sold first.

Lower of Cost or Market

Accounting principle where inventory is stated at the lower value between its original cost and current market price.

Inventory Item

A specific product or material that a company holds in stock with the intent to sell or use in the production process.

Inventory Value

The total cost or market value of all items held in stock by a business, including raw materials, work-in-progress, and finished goods.