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WAEC Commerce 2021 Objective — Question 10

Question 10 of 50 from the West African Examinations Council (WAEC) Commerce 2021 Objective paper, with the correct answer and a full explanation.

One of the disadvantages of selling on credit is

A. reduction in turnover
B. reduction in profit
C. increase in liquidity
D. increase in bad debtsCorrect

Explanation

Higher credit sales increase the tendency of bad debts.

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