The Rationale Behind Offering Customers Credit Is

question 57

Multiple Choice

The rationale behind offering customers credit is

• A) permitting customers to pay with credit cards or on credit makes it easier for them to buy, and it also attracts new customers.
• B) offering customers credit helps with the firm's cash flow position.
• C) offering customers credit helps match revenues with expenses for the same time period.
• D) permitting customers to pay with credit cards or on credit forces a company to rely less on accounts receivables and more on accounts payables.

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Definitions:

Sodium Hydroxide

A highly caustic metallic base and alkali salt, commonly known as lye or caustic soda, used in various industrial processes.

Carbonyl

A functional group in organic chemistry consisting of a carbon atom double-bonded to an oxygen atom.

Acetone

A volatile, flammable liquid used as a solvent and an antiseptic, known chemically as propanone.

Synthesize

To combine simpler substances chemically to form a more complex substance, often used in reference to the production of chemical compounds in a laboratory.