Question

Which of the following statements is FALSE?A. Credit management trades off the carrying the cost of extending credit to buyers against the goal ofincreasing sales.B. The credit period is typically longer for perishable goods and for buyers with higher credit risk.C. Terms of sale "2/10 net 45" indicates a 2% discount if paid within 10 days, with the total amount due in45 days if the discount is not taken.D. Banker's acceptances are credit commitments made before delivery, are guaranteed by banks, and arecommon in international trade.

Answer 1

B. The credit period is typically longer for perishable goods and for buyers with higher credit risk.

Step-by-step explanation:

The credit period is typically shorter for perishable goods.