Which of the following is a benefit of selling on credit?
A)Some customers do not pay,creating an expense.
B)Expenses are reduced by making sales to a wide range of customers.
C)Revenues are increased by making sales to a wider range of customers.
D)Cash is received sooner.

Question

Quizplus · Accepted Answer

Selling on credit allows a business to make sales to a wider range of customers who may not have the cash to make purchases upfront. This can lead to an increase in revenues.

Answer: D 
 While selling on credit may delay the receipt of cash, it ultimately leads to cash being received sooner than if the business had not made the sale at all.

Which of the Following Is a Benefit of Selling on Credit