Extending Credit to Customers Will Result in Which of the Following

question 49

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 above.

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Definitions:

Concentrated

Characterized by a high density or intensity of a particular attribute or component in a small area or volume.

New Religious Movement

A term used to describe faith-based communities or spiritual groups that have emerged recently and are distinct from traditional religious systems.

Validity

The extent to which a concept, conclusion, or measurement is well-founded and corresponds accurately to the real world.

Authenticity

Is the extent to which qualitative investigation captures social realities as experienced by insiders.