7 [Question text] Which of the following statements is FALSE? Select one: A. One method used to monitor the collections of accounts receivable is the aging schedule. B. The key to maintaining control over collection of accounts receivable is that the probability of default increases with the age of the account. C. Accounts receivable is an asset that reflects sales made on credit. D. Since the 2 percent discount is so small, terms of credit such as 2/10 net 30 do not have much impact on accounts receivable management.
7 [Question text] Which of the following statements is FALSE? Select one: A. One method used to monitor the collections of accounts receivable is the aging schedule. B. The key to maintaining control over collection of accounts receivable is that the probability of default increases with the age of the account. C. Accounts receivable is an asset that reflects sales made on credit. D. Since the 2 percent discount is so small, terms of credit such as 2/10 net 30 do not have much impact on accounts receivable management.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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27
[Question text] Which of the following statements is FALSE?
Select one:
A. One method used to monitor the collections of accounts receivable is the aging schedule.
B. The key to maintaining control over collection of accounts receivable is that the probability of default increases with the age of the account.
C. Accounts receivable is an asset that reflects sales made on credit.
D. Since the 2 percent discount is so small, terms of credit such as 2/10 net 30 do not have much impact on accounts receivable management.
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