Which one of the following statements is correct concerning the length of the credit period?
A) Credit periods are relatively constant across industries.
B) A seller's credit period is not affected by the buyer's inventory cycle.
C) The buyer's operating cycle affects the length of a seller's credit period.
D) A seller's credit period should be longer than the buyer's operating cycle.
E) A seller's credit period should approximate the length of the buyer's receivables period.
Correct Answer:
Verified
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