Which of the Following Statements Is FALSE

question 34

Multiple Choice

Which of the following statements is FALSE?

• A)After a firm decides on its credit standards, it must next establish its credit terms.
• B)An ageing schedule categorises accounts by the number of days they have been on the firm's books.
• C)The decision of how much credit risk to assume plays a large role in determining how much money a firm ties up in its payables.
• D)Knowledge of the payments pattern is also useful for forecasting the firm's working capital requirements.

---

Definitions:

Differing Strategies

Various approaches or plans designed to achieve specific goals or outcomes.

Corporate Integration

The process of combining different parts of a company or organizations to work more effectively as a whole.

Worth

The value of an asset, often measured in monetary terms, or the importance, usefulness, or contribution of something to a particular cause or context.

Alliances

Agreements or partnerships between two or more entities to pursue a set of agreed upon objectives while remaining independent.