Which of the Following Statements Is False

question 24

Multiple Choice

Which of the following statements is false?

• A) After a firm decides on its credit standards, it must next establish its credit terms.
• B) The decision of how much credit risk to assume plays a large role in determining how much money a firm ties up in its payables.
• C) Knowledge of the payments pattern is also useful for forecasting the firm's working capital requirements.
• D) An aging schedule categorizes accounts by the number of days they have been on the firm's books.

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Definitions:

All-or-none

A principle that states certain processes, like nerve impulse conduction, occur fully or not at all.

Action Potential

A temporary reversal of the electrical polarization of the membrane of a nerve cell, allowing it to transmit an impulse.

Synaptic Gap

The tiny space between neurons through which neurotransmitters move to carry signals from one neuron to the next.

Chemical Diffusion

The process by which molecules move from an area of higher concentration to one of lower concentration, driven by random particle movements.