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:

Cyclic Variation

Represents recurrent fluctuations in a time series data over a period longer than one year, often tied to economic, environmental, or social cycles.

Indications

Signs or symptoms that suggest the presence of a particular condition or the need for a specific treatment or intervention.

Sample Proportions

The fraction or percentage of items in a sample that are part of a particular category or characteristic.

Lower Control Limit

The lowest boundary in a control chart used to monitor process variability; falling below this limit signals an out-of-control process.