A Company Extends Credit to Customers Because It Expects The

Multiple Choice

A company extends credit to customers because it expects the:

A) benefits from the rise in sales revenue to be greater than the cost of extending credit.
B) interest charged to be greater than the cost of extending credit.
C) tax savings from a lower net income to be greater than the cost of extending credit.
D) because its borrowing cost is lower than the cost of extending credit.