Which One of the Following Statements Is False

question 48

Multiple Choice

Which one of the following statements is false?

• A)An aging schedule includes only overdue accounts.
• B)Aging schedules are used to monitor accounts receivable.
• C)If sales are seasonal,the percentages shown on an aging schedule will vary during the year.
• D)Collection efforts may involve legal action.
• E)Investments in accounts receivable equal average daily sales times average collection period.

---

Definitions:

International Financial Reporting Standards

A set of accounting standards developed by the International Accounting Standards Board, used globally to prepare public company financial statements.

Profitability Ratios

A group of ratios that show the combined effects of liquidity, asset management, and debt on operations.

Liquidity

The ease with which an asset can be converted into cash without affecting its market price.

Asset Management

The process of overseeing and optimizing the performance of a set of assets in a way that aligns with the investor's objectives.