The Advantage of Extending Credit to Customers Is That It

question 63

Multiple Choice

The advantage of extending credit to customers is that it helps customers to buy products and services,thereby increasing the seller's revenue.The disadvantages of extending credit are costs related to:

• A)increased sales.
• B)bad debt expense.
• C)increased notes receivable.
• D)marketing.

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Definitions:

Financial Incentives

Monetary rewards or benefits offered to influence the behavior or actions of individuals or organizations, such as bonuses, subsidies, or tax credits.

Contract Employees

Outside workers who are hired by a firm to perform specific predetermined tasks for a company and who are paid by the job.

Permanent Employees

Individuals employed on an ongoing basis, typically with full-time hours and benefits.

Full-Time

Employment status where individuals work the full number of hours defined as standard by their employer, typically around 35 to 40 hours a week.