Which of the Following Statements Is FALSE

question 22

Multiple Choice

Which of the following statements is FALSE?

• A)The aging schedule is also sometimes augmented by analysis of the payments pattern,which provides information on the percentage of monthly sales that the firm collects in each month after the sale.
• B)Because accounts receivable days can be calculated from the firm's financial statement,outside investors commonly use this measure to evaluate a firm's credit management policy.
• C)If the aging schedule gets "top-heavy"-that is,if the percentages in the upper half of the schedule begin to increase-the firm will likely need to revisit its credit policy.
• D)Seasonal sales patterns may cause the number calculated for the accounts receivable days to change depending on when the calculation takes place.

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Definitions:

Refractory Period

The period immediately following the transmission of an impulse in nerve or muscle cells during which a second impulse cannot be generated.

Tetanus

A serious bacterial infection characterized by muscle stiffness and spasms, caused by the toxin produced by Clostridium tetani.

Muscle Fiber

A single muscle cell, typically elongated and capable of contracting to produce movement or maintain posture.

Complete Tetanus

A state of sustained muscle contraction caused by rapid, repeated stimulation surpassing the relaxation phase between stimuli.