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If a Company Making Only Cash Sales Is Considering Allowing

Question 294

Multiple Choice

If a company making only cash sales is considering allowing customer credit, then __________.


A) Sales will likely decrease.
B) The change will result in a source of funds.
C) Receivables will likely increase.
D) Net working capital will decrease if funding needs are met with long-term liabilities.
E) Expenses will fall due to monthly billings and collection efforts.

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