Which of the following statements is FALSE?

A) After a firm decides on its credit standards, it must next establish its credit terms.
B) The decision of how much credit risk to assume plays a large role in determining how much money a firm ties up in its payables.
C) Knowledge of the payments pattern is also useful for forecasting the firm's working capital requirements.
D) An aging schedule categorizes accounts by the number of days they have been on the firm's books.

Answer: B

Business

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