When a company decides to sell its goods on credit, it should evaluate the effect on profit of $\begin{array}{ll}&\text { Adchtional } & \text { Additiona } \
&\text { Expenses } & \text { Revenues }\
\hline I.&\text { No } & \text { No } \
II.&\text { Yess } & \text { No } \
III.&\text { No } & \text { Yes } \
IV.&\text { Yes } & \text { Yes }
\end{array}$

Question

Quizplus · Accepted Answer

Selling goods on credit typically increases both expenses (due to costs associated with credit risk, administration, and potential bad debts) and revenues (by attracting more customers or larger orders).

When a Company Decides to Sell Its Goods on Credit