Which of the following statements is FALSE?

A.Under the

ModiglianiMiller assumptions of perfect capital markets, the amounts of payables and receivables are irrelevant.

B.

One factor that contributes to the length of a firm's receivables and payables is the delay between the time a bill is paid and the cash is actually received.

C.

The credit that the firm is extending to its customer is known as trade credit.

D.

Collection float is the amount of time it takes before payments to suppliers actually result in a cash outflow for the firm.