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.

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Definitions:

Timber

Wood that has been processed into beams and planks, a stage in the process of wood production.

Minerals

Natural inorganic substances occurring in the earth that have a definite chemical composition and physical properties.

Article 2A

pertains to leases of personal property under the Uniform Commercial Code, governing transactions such as rent-to-own agreements.

Personal Property

Movable assets owned by individuals or entities, in contrast to real property like land or buildings.