Which of the Following Statements Is False

Multiple Choice

Which of the following statements is false?

A) In addition to sales price,product quality,and advertising,credit policy is a major controllable variable which can affect product demand.
B) Sharp seasonal swings in sales and fast growth are two reasons why a firm's aging schedule and DSO may show high variability.
C) Changes in a firm's collection policy can affect sales and working capital but will not affect additional funds needed.
D) Cash discounts can be used to influence a firm's sales volume and its DSO.
E) Firms which offer credit terms with a cash discount usually seek two benefits: (1) to attract more customers,and (2) to reduce their DSO.