Which of the Following Statements Is Incorrect

question 94

Multiple Choice

Which of the following statements is incorrect?

• A) An accounts receivable arises when a business sells goods or services to a third party on credit terms.
• B) The absence of bad debts is an indicator that the credit policy may be too strict and can result in the loss of profits.
• C) The higher the number of customer being supplied on credit and amount of inventories, the lower the working capital requirements.
• D) The failure to allow for uncollectable accounts will cause the owners' equity to be overstated.

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Definitions:

External Locus

A belief that one's life events are largely determined by external factors, forces, or agents beyond one's control.

Emotion-Focused Coping

A coping strategy that involves identifying and expressing emotions associated with stress and seeking emotional support from others, rather than directly addressing the source of stress.

Adaptation-Level Phenomenon

The psychological process by which an individual's expectations and standards adjust based on past experiences, influencing their perception of new stimuli.

Internal Locus

The belief that one has control over their life events and outcomes, rather than external forces having that control.