Extending credit to a customer has three major components ________.
A)a policy on how customers will qualify for credit,a policy on the payment plan allowed creditors,and a policy for collecting overdue bills
B)a policy on how customers will qualify for credit,a policy on paying commissions on sales,and a policy for collecting overdue bills
C)a policy on how customers will qualify for credit,a policy on the payment plan allowed creditors,and a policy on accounting for depreciation
D)a policy on how customers will qualify for credit,a policy on accounting for depreciation,and a policy on paying commissions on sales

Question

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The three major components of extending credit to a customer are having a policy on how customers will qualify for credit, a policy on the payment plan allowed creditors, and a policy for collecting overdue bills. Option A is the only choice that includes all three components. Choice B includes a policy on paying commissions on sales, which is not directly related to extending credit. Similarly, choice C includes a policy on accounting for depreciation, which is not relevant in this context. Choice D includes a policy on paying commissions on sales and accounting for depreciation, but it misses the policy on the payment plan allowed creditors.

Extending Credit to a Customer Has Three Major Components ________