Extending Credit to Customers Will Result in Which of the Following

question 111

Multiple Choice

Extending credit to customers will result in which of the following additional costs?

• A)Increased employer costs will be incurred to evaluate customer credit worthiness,track what each customer owes,and follow up to ensure correction.
• B)Bad debt expense will result when amounts cannot be collected from customers.
• C)Delayed receipt of cash may result requiring the company to take out short-term loans and incur interest costs.
• D)All of the answers are acceptable.

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Definitions:

Required Skills

The specific abilities, knowledge, and expertise that are necessary for an individual to perform a job effectively.

Marginal Contribution

The additional benefit or output produced from using one more unit of a resource.

Professional Sports Players

Individuals who compete in athletic competitions and are paid for their performance and participation in sports.

Revenue Stream

The source of income for a business or organization, which can come from sales, services, investments, or other channels.