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I have watched all lectures up to and including double entry. Yet i can’t tackle this question.
The answer is C. When goods are sold to customers the sale is recorded immediately, which increases the profit. If you give customers longer to pay then it takes longer to actually receive the cash and this might mean less money in the bank for a while.
The explanation as to why the other choices are not correct is given in the answer in the Revision Kit (and it should be immediately obvious anyway as to why A and B are not correct 🙂 )
what is ‘ no cash effect’? in the explanation given for B in the answers section.
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