Charging interest on past due customer accounts reflects that:
A)credit customers receive preferential treatment.
B)government regulations protect customers who are late in making payments.
C)money has a time value.
D)credit sales cost more to manage than they are worth.

Question

Quizplus · Accepted Answer

Charging interest on past due customer accounts reflects that money has a time value, meaning that the longer it takes for the customer to pay, the more it costs the company in terms of lost opportunities to use that money in other ways, such as investing or paying down debt.

Charging Interest on Past Due Customer Accounts Reflects That