A Company Extends Credit to Customers Because It Expects The

Multiple Choice

A company extends credit to customers because it expects the:

A) rise in sales revenue to be greater than the rise in cost of extending credit.
B) delay in receiving cash to cost more than the increase in wage costs.
C) tax savings from a lower net income to be greater than the cost of extending credit.
D) bad debts expense to be less than the additional wage costs.