Which of the following information is needed to determine the creditworthiness of a customer?
A)Credit limit.
B)Credit availability.
C)Details of recent sales that are not yet recorded in the customer's accounts receivable account.
D)All of the options are correct.

Question

Quizplus · Accepted Answer

All of the options are needed to determine the creditworthiness of a customer.

A) Credit limit helps in knowing the maximum amount that can be extended as credit to the customer. 
B) Credit availability lets the business know how much credit the customer has already used and whether they have been paying on time. 
C) Details of recent sales that are not yet recorded in the customer's account receivable account give an idea of their current financial position and whether they can pay the outstanding dues on time.

Thus, all of these factors are crucial in determining the creditworthiness of a customer, and hence, option D is the correct answer.

Which of the Following Information Is Needed to Determine the Creditworthiness