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

Question

Quizplus · Accepted Answer

Offering credit can increase sales by making it easier for customers to purchase, so if a company stops extending credit, it might see a decrease in revenue due to reduced sales. However, the costs associated with extending credit (such as bad debts and administrative costs) would also decrease.

If a Company Did Not Extend Credit to Customers