Optimal credit policy is one in which the A) increased cash flow from

Optimal credit policy is one in which the

A) increased cash flow from sales equals the carrying cost of accounts receivable.
B) sales of a firm are maximized.
C) increased profit from sales equals the costs of carrying and administering accounts receivable.
D) customers pay their bills on time, without exception.
E) costs of taking a trade discount equal its benefits.

ANSWER

C