The rationale behind offering customers credit is
A) permitting customers to pay with credit cards or on credit makes it easier for them to buy, and it also attracts new customers.
B) offering customers credit helps with the firm's cash flow position.
C) offering customers credit helps match revenues with expenses for the same time period.
D) permitting customers to pay with credit cards or on credit forces a company to rely less on accounts receivables and more on accounts payables.

Question

Quizplus · Accepted Answer

Offering credit to customers makes it easier for them to purchase products or services, thereby potentially increasing sales and attracting new customers. It does not directly help with a firm's cash flow position, match revenues with expenses, or force a company to rely less on accounts receivables.

The Rationale Behind Offering Customers Credit Is