All of these are negative effects of extending credit to customers EXCEPT:
A)it delays the receipt of cash.
B)it creates a borrowing situation for the owners of the business providing credit.
C)some customers with credit will not pay.
D)it increases the cost of selling.

Question

Quizplus · Accepted Answer

Extending credit to customers typically increases the cost of selling due to the additional expenses associated with managing credit, such as checking credit histories and collecting overdue payments. Choices A, B, and C are all negative effects of extending credit.

All of These Are Negative Effects of Extending Credit to Customers