97.8k views
0 votes
To attract new customers, a company offers zero percent credit for new

purchases. As a result, they increase their sales but also increase their
accounts receivable. Why could this be a problem for the company?
A. They may not have enough cash flow to replenish their inventory.
B. The company's statement of cash flows could appear misleading.
C. The new customers may tell their friends about the great credit
offer.
O D. The new customers may not want the products they purchased.

User Cauterite
by
3.7k points

1 Answer

5 votes

Answer:

A

Step-by-step explanation:

User Wiwiweb
by
5.1k points