Question
What do you understand by Selling on credit?
Answer :
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Selling on credit refers to the practice where a business delivers goods or provides services to a customer without requiring immediate payment, allowing the customer to pay at a later agreed-upon date. In the context of the Order to Cash (O2C) process, selling on credit is a fundamental activity that directly impacts accounts receivable, cash flow management, and customer relationship management. When a company opts to sell on credit, it essentially extends short-term financing to the customer, creating a receivable on the company’s books that represents money owed by the customer for the goods or services received. The decision to sell
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