Which of the Following Statements Is Not True

question 6

Multiple Choice

Which of the following statements is not true?

• A) An aging schedule shows only overdue accounts.
• B) An aging schedule shows the probability that a 67-day account will be unpaid when it is a 68-day account.
• C) Average collection period data is somewhat flawed if sales are seasonal.
• D) Collection efforts may involve legal action.
• E) Investments in accounts receivable equal average daily sales times average collection period.

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Definitions:

Caucasian

A term historically used to describe people of European, North African, or Western Asian descent, but its use and implications vary and can be controversial.

Pakistani

Pertaining to Pakistan or its people, culture, languages, or traditions.

Prejudice

A preconceived opinion that is not based on reason or actual experience.

Discrimination

The unfair treatment of individuals based on their membership in a certain group or category, such as race, gender, or age.