When an organization sells on credit,it is essentially reducing the risk that a portion of the accounts receivable balance will never be collected.

Question

Quizplus · Accepted Answer

Selling on credit actually increases the risk that a portion of the accounts receivable balance may never be collected, as it involves extending goods or services to a customer with the expectation of payment at a later date.

When an Organization Sells on Credit,it Is Essentially Reducing the Risk