The credit period offered is influenced by:
A) the size of the account to receive credit.
B) the collateral value of the goods sold.
C) the probability that the customer will not pay.
D) All of these.
E) None of these.

Question

Quizplus · Accepted Answer

The credit period offered can be influenced by all of the options listed. The size of the account to receive credit can impact the length of the credit period as larger accounts may qualify for longer payment timelines. The collateral value of the goods sold can also impact the credit period as it may provide security for the seller in the event the buyer cannot pay. Lastly, the probability that the customer will not pay can influence the credit period as higher-risk customers may only be offered short payment windows.

The Credit Period Offered Is Influenced By