Which of the following statements is FALSE?
A)The Check Clearing for the 21st Century Act (Check 21),which became effective on October 28,2004,eliminated the disbursement float due to the check-clearing process.
B)Trade credit is,in essence,a loan from the selling firm to its customer.
C)The accounts receivable balance represents the amount that a firm owes its suppliers for goods that it has received but for which it has not yet paid.
D)Providing financing at below-market rates is an indirect way to lower prices for only certain customers.

Question

Quizplus · Accepted Answer

The accounts receivable balance actually represents the amount that customers owe the firm for goods or services that the firm has delivered but for which it has not yet been paid. It does not represent the amount that the firm owes its suppliers.

Which of the Following Statements Is FALSE