An open account is of minimal risk to the seller and extremely risky to the buyer.

Question

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An open account is a credit arrangement where the buyer agrees to pay the seller at a later date, usually within 30-90 days. While it is true that open accounts carry some risk for both the buyer and the seller, an open account is considered far riskier for the seller, as they are extending credit to the buyer without any guarantee of payment. The buyer, on the other hand, can benefit from increased cash flow and may see an open account as a more favorable payment option.

An Open Account Is of Minimal Risk to the Seller