Why would a retailer offer an in-house credit card to their customers when proceeds of the sales are tied up as accounts receivable?
A)Offering credit is a service for the customers making purchases easier for the consumer.
B)Accounts receivable is not a current asset and has no effect on what is owed to the retailer.
C)By accepting only cash,assets would generate a low ROI.
D)Retailers offer credit to increase their average gross margin.

Question

Quizplus · Accepted Answer

Customers can pay back what they owe to the retailer over time,rather than all at once.Also customer loyalty programs can be tracked with an in-house credit card.

Why Would a Retailer Offer an In-House Credit Card to Their