The relative proportions of cash sales and credit sales make an important difference to which of the following?

Question

Quizplus · Accepted Answer

Expected cash flows are directly affected by the relative proportions of cash sales and credit sales. Cash sales generate immediate cash inflows, while credit sales result in accounts receivable that must be collected in the future. The higher the proportion of cash sales, the higher the expected cash flows.

The Relative Proportions of Cash Sales and Credit Sales Make