Which of the Following Statements Is False

question 40

Multiple Choice

Which of the following statements is false?

• A) The lower the discount percentage offered, the greater the cost of forgoing the discount and using trade credit.
• B) A firm should choose to borrow using accounts payable only if trade credit is the cheapest source of funding.
• C) A firm should always pay on the latest day allowed.
• D) A firm should strive to keep its money working for it as long as possible without developing a bad relationship with its suppliers or engaging in unethical practices.

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Definitions:

Economic Recovery

The process of overcoming a period of economic downturn or recession, characterised by a resurgence in business activity, employment, and output.

World Depression

A worldwide economic downturn, most notably the Great Depression of the 1930s, which had profound effects on global economies and societies.

Federal Government

The central authority of the United States, composed of the legislative, executive, and judicial branches, responsible for governing the country at a national level.

African-Americans

Citizens of the United States with total or partial ancestry from any of the black racial groups of Africa.