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Which of the following statements is? FALSE? A
Which of the following statements is? FALSE?
A. 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.
B. Seasonal sales patterns may cause the number calculated for the accounts receivable days to change depending on when the calculation takes place.
C. 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.
D. 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.
Expert Solution
Option 'A" is the correct answer.
Because, if the aging schedule gets the lower heavy (i.e if the % in the lower half of the schedule begin to increase the firm will likely need to revisit its credit policy.
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