Which of the Following Statements Is NOT True

question 30

Multiple Choice

Which of the following statements is NOT true?

• A)Bankers' acceptances are more popular than commercial paper used in Canada as a short-term financing source.
• B)Banks are the ultimate guarantors for payments of bankers' acceptances.
• C)Bankers' acceptances can be traded in the secondary markets prior to their maturities.
• D)Bankers' acceptances are commonly used to finance goods sold with short payment terms.

---

Definitions:

Net Method

An accounting method that records purchases after deducting any available discounts, directly showing the net purchase cost.

Credit Terms

Conditions under which credit will be extended to a customer, including repayment timeframe and interest rate.

Merchandise Inventory

Goods a company has in stock and available for sale, typically in a retail or wholesale setting.

Inventory Shrinkage

The loss of products between purchase and sale, often due to theft, damage, or errors in counting.