The Rationale Behind Offering Customers Credit Is

question 160

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 customer's credit helps with the firm's cash flow position.
• C)Offering customer's 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:

Gold

Gold is a precious metal that has been used historically as a medium of exchange and is widely held as a form of investment or hedge against economic uncertainty.

Troy Oz.

A measurement unit for valuable metals, with one troy ounce being roughly equivalent to 31.1035 grams.

Gold Mine

An excavation or operation aimed at extracting gold from the ground, often involving both open-pit and underground methods.

Ounce

A unit of weight used in some countries, typically equal to one sixteenth of a pound or about 28.35 grams.