Which of the Following Statements Is FALSE

question 2

Multiple Choice

Which of the following statements is FALSE?

• A)After a firm decides on its credit standards,it must next establish its credit terms.
• B)The decision of how much credit risk to assume plays a large role in determining how much money a firm ties up in its payables.
• C)Knowledge of the payments pattern is also useful for forecasting the firm's working capital requirements.
• D)An aging schedule categorizes accounts by the number of days they have been on the firm's books.

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Definitions:

Affiliation

The joining of people for mutual support; membership; a social motive for assuming leadership responsibility.

Achievement

Accomplishment of a task; fulfillment; a social motive for assuming leadership responsibility.

Motivating Force

The driving power or influence behind actions and behaviors aimed at achieving goals.

Employees

Individuals hired by an organization to perform specific duties in exchange for compensation.