Which of the Following Is Not True Concerning Considerations in Setting

question 1

Multiple Choice

Which of the following is not true concerning considerations in setting a credit policy?

• A)A firm that supplies a perishable product will tend to offer restrictive credit terms.
• B)A firm whose customers are in a high-risk business will tend to offer restrictive credit terms.
• C)Lengthening the credit period effectively reduces the price paid by the customer.
• D)Small accounts, associated with firms that find it difficult to acquire a line of credit, tend to receive longer credit periods.
• E)None of the above.

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Definitions:

Meanders

Naturally occurring bends or curves in a river or waterway, typically resulting from erosion and sediment deposition.

Erode

The process by which natural forces such as water, wind, or ice wear away soil, rock, or other materials from the Earth's surface.

Sea Level

The average height of the ocean's surface between high and low tide, used as a standard in measuring land elevation and ocean depth.

Velocity

The rate of change of an object's position with respect to a frame of reference, showing both speed and direction of the object.