Which of the following is NOT a potential cost of granting trade credit?
A)Delayed receipt of cash from sales
B)Lost cash due to customers taking an offered discount for earlier payment
C)Lost receipts due to inability of customers to pay agreed to credit terms
D)Increased sales

Question

Quizplus · Accepted Answer

Increased sales is not a potential cost of granting trade credit. It is actually a benefit of offering trade credit, as it can increase sales by making it easier for customers to make purchases. The other options are potential costs of granting trade credit.

Which of the Following Is NOT a Potential Cost of Granting