Which one of the following statements is most likely to be true if a seller extends credit
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Question:
Will have a lower level of accounts receivable than those companies whose credit period is shorter than the purchaser?s operating cycle.
Is, in effect, financing more than just the purchaser?s inventory needs.
Can be certain that the purchaser will be able to convert the inventory into cash before payment is due.
Has no need for a stated discount rate or credit period.
Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
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