Which of the Following Is Not Considered a "Cost" of Extending

question 78

Multiple Choice

Which of the following is not considered a "cost" of extending credit to customers?

• A)The opportunity cost of lost interest
• B)Keeping the records for accounts receivable
• C)The increased sales resulting from the extension of credit
• D)The possibility of unpaid accounts

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Definitions:

Registered Mortgage

A legal document that secures a loan with real estate, ensuring it is registered in official records.

Priority

The state of being considered more important or urgent than other matters or claims.

Mortgage Financing

A method of financing property where the borrower takes out a loan secured by the property, typically from a bank or financial institution.

Land Developer

An individual or company that acquires land and prepares it for construction, including planning, zoning, and installing basic infrastructure.