Which of the following costs is not associated with the extension of credits and accounts receivables?.

Costs of investment tied up in accounts receivables.

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Collection cost

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Default cost

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Cost of measures initiated to collect blocked funds beyond expire date

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All are associated.

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Solution

The correct option is A All are associated.
All the costs are associated with the extension of credit and accounts receivables as some of the firm's resources are blocked and there is a time lag between the credit sale to customers and receipt of cash from them as payment.

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Which of the following costs is not associated with the extension of credits and accounts receivables?.

The correct option is A All are associated.All the costs are associated with the extension of credit and accounts receivables as some of the firm's resources are blocked and there is a time lag between the credit sale to customers and receipt of cash from them as payment.

The correct option is A All are associated.
All the costs are associated with the extension of credit and accounts receivables as some of the firm's resources are blocked and there is a time lag between the credit sale to customers and receipt of cash from them as payment.