A company that sells goods to a customer on credit will see no immediate change in its cash position.

Name: A company that sells goods to a customer on credit will see no immediate change in its cash position.
Brand: Quizplus
Rating: 4.7 (56 reviews)

Question

Quizplus · Accepted Answer

Selling goods on credit means that the company has not yet received payment from the customer. Therefore, there will be no immediate change in the company's cash position, as the payment will likely be received at a later date, depending on the agreed-upon terms of the credit sale.

A Company That Sells Goods to a Customer on Credit