Which of the Following Statements Is FALSE

question 25

Multiple Choice

Which of the following statements is FALSE?

• A)Under the Modigliani-Miller assumptions of perfect capital markets,the amounts of payables and receivables are irrelevant.
• B)One factor that contributes to the length of a firm's receivables and payables is the delay between the time a bill is paid and the cash is actually received.
• C)Collection float is the amount of time it takes before payments to suppliers actually result in a cash outflow for the firm.
• D)The credit that the firm is extending to its customer is known as trade credit.

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Definitions:

Convicted

Being found guilty of a crime by a court of law or through a guilty plea.

Economic Duress

A situation where a party is induced to enter into a contract or agreement under unlawful pressure involving threats to their economic stability.

Amended Contract

A contract that has been modified or changed after its original execution, usually involving additional agreements or alterations to existing terms.

Breach

Violation of a law, duty, agreement, or trust.