CICM Credit Practice Test & Exam Prep | United Kingdom

Which statement best describes the relationship between credit sales and cash flow?

Credit sales always improve immediate cash inflow compared with cash sales Credit sales delay cash receipt, so strong credit control is needed to protect liquidity Credit sales have no effect on the cash operating cycle Credit sales convert all inventory into cash on the invoice date

Correct Answer:

Credit sales delay cash receipt, so strong credit control is needed to protect liquidity

Access more questions from this quiz

Continue to CICM Credit Practice Test & Exam Prep | United Kingdom for more practice questions and the full quiz experience.

Access More Questions