Which of the following statements is false? Select all that apply: The optimal c

Question

Which of the following statements is false? Select all that apply:

The optimal credit policy minimizes the total cost of granting credit

Firms should avoid offering credit at all cost

An increase in a firm's average collection period generally indicates that an increased number of customers are taking advantage of the cash discount.

The costs of the credit application process and the costs expended in the collection process are carrying costs of granting credit

Character refers to the ability of a firm to meet its credit obligations out its operating cash flows.

Explanation / Answer

An increase in a firm's average collection period generally indicates that an increased number of customers are taking advantage of the cash discount.

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