Which of the Following Statements Is FALSE

question 25

Multiple Choice

Which of the following statements is FALSE?

• A)Under the Modigliani-Miller assumptions of perfect capital markets,the amounts of payables and receivables are irrelevant.
• B)One factor that contributes to the length of a firm's receivables and payables is the delay between the time a bill is paid and the cash is actually received.
• C)Collection float is the amount of time it takes before payments to suppliers actually result in a cash outflow for the firm.
• D)The credit that the firm is extending to its customer is known as trade credit.

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Definitions:

Foramen Ovale

An opening in the septum between the two atria of the heart in the fetus, which normally closes after birth.

Inferior Vena Cava

The inferior vena cava is a large vein that carries deoxygenated blood from the lower and middle portion of the body to the right atrium of the heart.

External Iliac Vein

A large vein in the pelvis that carries deoxygenated blood from the lower limbs back to the heart.

Superior Vena Cava

A large vein that carries deoxygenated blood from the upper half of the body to the heart's right atrium.