Asked by
Saifali Nakarani
on Dec 01, 2024
Verified
Which of the following is not a cost related to the extension of credit to customers?
A) Bad-debt losses
B) Prompt payment discounts
C) Quantity discounts
D) Collection costs
Credit Extension
The process of providing new or additional credit to borrowers.
Bad-Debt Losses
Financial losses incurred when a debtor fails to make payment on a loan, leading to a write-off by the creditor.
Collection Costs
Expenses incurred in the process of recovering debts or payments from debtors.
- Understand the elements and importance of a company's credit policy.
Verified Answer
KC
Learning Objectives
- Understand the elements and importance of a company's credit policy.