Granting credit to customers
A) directly affects a firm's cash account.
B) is never a good idea.
C) has no effect on the cash budget.
D) not part of accounts receivables.

Question

Quizplus · Accepted Answer

Granting credit to customers can impact a firm's cash account because it delays the collection of cash from the sale. The longer it takes for the customer to pay, the longer the firm will have to wait to receive the cash, which can impact the cash flow and overall financial management of the business.

Granting Credit to Customers