Which of the Following Statements Is False

question 143

Multiple Choice

Which of the following statements is false?

• A) In addition to sales price,product quality,and advertising,credit policy is a major controllable variable which can affect product demand.
• B) Sharp seasonal swings in sales and fast growth are two reasons why a firm's aging schedule and DSO may show high variability.
• C) Changes in a firm's collection policy can affect sales and working capital but will not affect additional funds needed.
• D) Cash discounts can be used to influence a firm's sales volume and its DSO.
• E) Firms which offer credit terms with a cash discount usually seek two benefits: (1)to attract more customers,and (2)to reduce their DSO.

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Definitions:

Bone Density

A measurement indicating the amount of mineral matter per square centimeter of bones, used in assessing osteoporosis and fracture risk.

Osteopenia

A condition characterized by lower than normal bone density, which can precede osteoporosis.

Osteomyelitis

An infection of bone, which can lead to bone damage and loss if untreated.

Periosteum

The dense layer of vascular connective tissue enveloping the bones except at the surfaces of the joints.