In general, the larger the portion of a firm's sales that are on credit, the ...
A. lower will be the form's need to borrow
B. higher will be the firm's need to borrow
C. more rapidly credit sales will be paid off
D. more the firm can buy raw materials on credit
I think this question is straight foward. When a company sells its inventory on credit the inventory decreases and the company's cash is less, so the company will have a higher need to bowwor. B is my answer....Is this correct???