It would be common for a firm which has adhered to a cash sales policy to experience a sudden and significant, but short-term, decrease in cash receipts immediately following the time the firm converts to a credit policy.

Question

Quizplus · Accepted Answer

When a firm shifts from a cash sales policy to a credit policy, it means customers are allowed to purchase goods or services on credit and pay at a later date, leading to a temporary decrease in immediate cash receipts as sales no longer result in instant cash.

It Would Be Common for a Firm Which Has Adhered