The biggest risk of selling on credit is:

Question

Quizplus · Accepted Answer

Selling on credit means that a business is extending credit to its customers and allowing them to pay for goods/services at a later date. This creates the risk of not collecting some or all of the receivables, which can lead to cash flow issues and potentially even bankruptcy. While posting a payment to the wrong subsidiary account could be a risk, it is not directly related to selling on credit. Losing a sale is also a risk, but not as significant as not collecting receivables. Therefore, option B is the biggest risk of selling on credit.

The Biggest Risk of Selling on Credit Is