ocr: Summary Itis worth remembering here what was said earlier with respect to profit not being the same thing as cash. The financial accounts recognise the profit on the sale of goods as soon as the goods are despatched to the customer. We know, however, that the granting of credit cerms to customers means that the final receipt of cash from customers will happen at some later time and that in the meantime the supplier still needs to tind cash to nake payments for fresh supplies of raw materials, to pay wages and to settle many other debts such as electricity and telephone bills. Ift the business ...
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