A Seller Who Extends Credit for a Longer Period Than

Multiple Choice

A seller who extends credit for a longer period than the purchaser's inventory cycle:

A) Will not end up financing other aspects of the purchaser's business beyond the immediate purchase and sale of the inventory.
B) Will force the purchaser to pay for inventory before that inventory is resold.
C) Will be assured that the purchaser will be able to convert the inventory into cash before payment is due.
D) Will have no need to offer a discount period and a net credit period.
E) Will end up financing a portion of the purchaser's receivables period as well.