Which of the Following Statements Is FALSE

question 67

Multiple Choice

Which of the following statements is FALSE?

• A)Trade credit is, in essence, a loan from the selling firm to its customer.
• B)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.
• C)The transaction costs for obtaining trade credit are lower than alternative financing options.
• D)Providing financing at below-market rates is an indirect way to lower prices for only certain customers.

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Definitions:

Subject

The person, place, thing, or idea that is being discussed or described in a sentence, or the area of study one focuses on.

Proposition

A statement or assertion that expresses a judgment or opinion.

Equivalent Propositions

Statements that are logically the same, in that they have the same truth value in every model or situation.

Meaning

The significance, definition, or implication of a word, phrase, sentence, or symbol.