One drawback of offering liberal credit to customers is that it can:
A) delay sales to a future period.
B) increase the cost of credit to customers.
C) delay the receipt of cash that the firm needs to meet its financial obligations.
D) decrease sales by the extension of credit and cause a loss to the company.

Question

Quizplus · Accepted Answer

Offering liberal credit can delay cash inflows, affecting the firm's ability to meet its financial obligations.

One Drawback of Offering Liberal Credit to Customers Is That