The following statement pertains to credit policy: A seller must have a source of ﬁnancing suﬃcient
to cover any accounts receivable balance created by introducing a credit policy.

Question

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This statement is true. If a seller offers a credit policy to customers, they will have accounts receivable balances to be collected later, which requires financing to cover current expenses until those balances are paid.

The Following Statement Pertains to Credit Policy: a Seller Must