Because money has time value,cash sales are always more profitable than credit sales.

Question

Quizplus · Accepted Answer

The profitability of cash sales versus credit sales depends on various factors such as the cost of financing, the potential for increased sales through offering credit, and the risk of non-payment. Credit sales can lead to higher overall profits if they attract more customers and if the cost of offering credit is lower than the additional profit generated.

Because Money Has Time Value,cash Sales Are Always More Profitable