Which of the Following Statements About the Tradeoffs of Extending

Multiple Choice

Which of the following statements about the tradeoffs of extending credit is not correct?

A) Extending credit to at least some customers is necessary in a competitive market to avoid losing sales to competitors.
B) Even if a company were to collect in full from customers,there would be other additional costs introduced by extending credit to customers.
C) Even though additional costs are incurred if credit is extended,a company expects that the additional revenue will be more than sufficient to offset the additional costs.
D) Even if there are no bad debts from credit sales,the delayed receipt of cash will always increase additional costs beyond the increased revenue from the credit sales.