Which of the Following Statements Is False

question 183

Multiple Choice

Which of the following statements is false?

• A) By extending credit, a firm typically increases its cash flow through increased gross profits.
• B) A cash discount is typically intended to be an incentive to pay early.
• C) All else the same, firms with higher markups will tend to have more flexible credit terms.
• D) Whenever credit is extended to a new customer who would not otherwise pay cash, the amount the seller has at risk is the price the customer pays.
• E) The carrying costs associated with granting credit will increase as credit policies are relaxed.

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Definitions:

Superego

The part of a person's mind that acts as a self-critical conscience, reflecting social standards learned from parents and teachers.

Conscious

Being in a state where one is cognizant of their personal existence, perceptions, reflections, and surroundings, among other things.

Marital Conflicts

Disputes or disagreements between married individuals or partners in a committed relationship.

Mental Instability

A condition characterized by significant variations in an individual's mood, thinking, or behavior, affecting their daily functioning.