Which of the Following Statements Is FALSE

question 15

Multiple Choice

Which of the following statements is FALSE?

• A)The Check Clearing for the 21st Century Act (Check 21),which became effective on October 28,2004,eliminated the disbursement float due to the check-clearing process.
• B)Trade credit is,in essence,a loan from the selling firm to its customer.
• C)The accounts receivable balance represents the amount that a firm owes its suppliers for goods that it has received but for which it has not yet paid.
• D)Providing financing at below-market rates is an indirect way to lower prices for only certain customers.

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Definitions:

Equate Price

The action of setting two or more goods or services to have the same price.

Marginal Cost

The outlay involved in the creation of an additional unit of a good or service.

Pareto Efficient

An economic state where resources are allocated in a way that it is impossible to make any one individual better off without making at least one individual worse off.

Efficiency

A measure of how well resources are used to achieve a goal, maximizing output from given inputs without waste.