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ACCN
QUESTION 2: Credit Transactions
1
5
Pre-exam QP
Term 2 2024
(40 marks; 24 minute
Answer the following questions regarding credit sales:
2.1.1 List TWO advantages for the business when goods are sold on credit.
Before granting credit the business must obtain the correct address and
contact details of the applicant Provide TWO other vital information that
must be checked before allowing anyone to buy goods on credit
2.12
2.1.3
Once credit has been granted, how can the business ensure that debtors
pay their account on time? Provide TWO points
(4

Verified Answer :

GinnyAnswer

Final answer:

Business advantages, vital information, and ensuring timely payments in credit sales.


Explanation:

Advantages for the business when goods are sold on credit:

  1. Increased sales revenue.
  2. Builds customer loyalty.

Vital information to check before allowing anyone to buy goods on credit:

  • Credit history.
  • Income stability.

Ways for the business to ensure debtors pay on time:

  1. Implementing strict payment deadlines.
  2. Sending reminders and follow-ups for overdue payments.

  4. Learn more about credit sales here:
  5. https://brainly.com/question/14279491

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