Which of the following statements is false?
A) Payment for inventory not sold until the next period, is an example of a payment of cash which is not an expense
B) Borrowing money is an example of a receipt of cash which is not revenue
C) Discount allowed to customers for prompt payment, is an expense that is treated as a payment of cash
D) Depreciation is an expense which is not a payment of cash

Question

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Discounts allowed to customers for prompt payment are not expenses but are treated as a reduction in revenue. The other statements are true. A) Payment for inventory not sold until the next period is an example of a payment of cash which is not an expense. B) Borrowing money is an example of a receipt of cash which is not revenue. D) Depreciation is an expense which is not a payment of cash as it represents the allocation of the cost of a long-term asset over its useful life.

Which of the Following Statements Is False