The accounts receivable approach to credit policy supports the theory that:

Multiple Choice

the default risk of a credit policy is the same as the default risk under an all cash$-$policy if your customers remain the same.

the best credit policy is an all$-$cash policy.

the cost of offering credit to a new customer is the same as the cost of offering credit to an existing customer.

increasing receivables guarantees increasing profits.

a firm's risk of offering credit to a new customer is limited to the cost of the items sold.