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:

Sensory Interaction

The process by which multiple senses, such as sight and sound, work together to give a more comprehensive understanding of the environment.

Kinesthesis

refers to the sense that detects body position, movement, and balance, primarily through receptors in the muscles and joints.

Olfaction

The sense of smell, a chemical sensing system for detecting and identifying scents in the environment.

Top-Down Processing

is an approach to understanding by starting with the larger concept or idea and working down to the details.