Which of the following is not true concerning considerations in setting a credit policy?
A)A firm that supplies a perishable product will tend to offer restrictive credit terms.
B)A firm whose customers are in a high-risk business will tend to offer restrictive credit terms.
C)Lengthening the credit period effectively reduces the price paid by the customer.
D)Small accounts, associated with firms that find it difficult to acquire a line of credit, tend to receive longer credit periods.
E)None of the above.

Question

Quizplus · Accepted Answer

Small accounts, associated with firms that find it difficult to acquire a line of credit, tend to receive shorter credit periods.

Which of the Following Is Not True Concerning Considerations in Setting