The conditions under which a ﬁrm sells its goods and services for cash or credit are called the:

Question

Quizplus · Accepted Answer

The terms of sale refer to the conditions under which a firm sells its goods and services for cash or credit, such as the price, timing of payments, and any applicable discounts. Choice B (credit analysis) and D (payables policy) are not directly related to the conditions of sale, while choice C (collection policy) and E (collection float) are related but not as specific as the terms of sale.

The Conditions Under Which a ﬁRm Sells Its Goods and Services