If a company did not extend credit to customers:
A)gross revenue would increase.
B)costs would increase but so would its revenue.
C)costs would decrease but so would its revenue.
D)gross profit would increase.

Question

Quizplus · Accepted Answer

If a company does not extend credit to customers, they would likely require payment at the time of purchase, which would decrease costs associated with non-payment or late payments. However, revenue would also decrease as some customers may not be able to afford the upfront payment and may choose to go elsewhere. Overall, the cost savings may not offset the loss of potential customers and revenue.

If a Company Did Not Extend Credit to Customers