Asked by Whian Bester on Jul 25, 2024
Verified
The delay in revenue collection should be considered when deciding whether or not you should offer credit to customers.
Revenue Collection
The process of gathering funds collected from sales, services, taxes, or other sources by an organization or government.
- Ascertain the determinants that influence credit policy choices, taking into account the cost of sales and the operational effects that come with extending credit.
- Investigate the link between a firm's financing necessities and its credit strategies.
Verified Answer
CW
Corey WilsonJul 27, 2024
Final Answer :
True
Explanation :
Offering credit to customers can lead to a delay in revenue collection, affecting cash flow and financial planning, thus it should be considered in the decision-making process.
Learning Objectives
- Ascertain the determinants that influence credit policy choices, taking into account the cost of sales and the operational effects that come with extending credit.
- Investigate the link between a firm's financing necessities and its credit strategies.
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