ERQ Ltd's ageing schedule of its accounts receivables shows that the percentage of accounts receivables within 30 days is 55% and the percentage of accounts receivables within 60 days is 30%. The balance of accounts receivables is over 60 days. The terms require that customers pay within 30 days. Which of the following statements is most likely to be false? O 1) Management needs to compare the average collection period and its ageing schedule to industry averages and if within industry norms, then the firm may need to revise its credit policy 2) Management should analyse trends in the collection of accounts receivable and changes in the ageing schedule over time The firm should perhaps engage a credit collection agency to collect receivables over 60 or 90 days. O 3) 4) The application of credit standards may be too stringent Management needs to compare the average collection period and its ageing 5) schedule with the firm's credit terms and it seems that with 45% of debtors not adhering to the stated credit terms of 30 days, management needs to execute changes to the current credit department's management of receivables B 18C