Which of the Following Statements About the Tradeoffs of Extending

question 114

Multiple Choice

Which of the following statements about the tradeoffs of extending credit is not correct?

• A)Extending credit to at least some customers is necessary in a competitive market to avoid losing sales to competitors.
• B)Even if a company were to collect in full from customers,there would be other additional costs introduced by extending credit to customers.
• C)Even though additional costs are incurred if credit is extended,a company expects that the additional revenue will be more than sufficient to offset the additional costs.
• D)Even if there are no bad debts from credit sales,the delayed receipt of cash will always increase additional costs beyond the increased revenue from the credit sales.

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Definitions:

Individuals

Refers to distinct beings, often used in the context of discussing singular human beings.

Arachnid

Group of arthropods that includes spiders and scorpions.

Cephalothorax

A body region found in arachnids and some crustaceans, where the head and thorax are fused into one unit.

Book Gills

Respiratory organs found in horseshoe crabs and some arachnids, consisting of leaf-like structures stacked on top of each other.