Which of the Following Is a Benefit of Selling on Credit

question 24

Multiple Choice

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

• A)Some customers do not pay,creating an expense.
• B)Expenses are reduced by making sales to a wide range of customers.
• C)Revenues are increased by making sales to a wider range of customers.
• D)Cash is received sooner.

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Definitions:

Marketable

Describes assets or securities that can easily be sold or converted into cash without a significant loss in value.

Cash Dividend

A payout from the company's profits, determined by the board of directors, given to certain shareholders as cash.

Trading Securities Portfolio

A collection of marketable securities that a business holds for the purpose of reselling them in the short term to profit from market price changes.

Fair Value

An estimate of the price at which an asset or liability could be traded in an orderly transaction between market participants at the measurement date.