A Testable Prediction About Processes That Can Be Observed and Measured

question 92

Multiple Choice

A testable prediction about processes that can be observed and measured is referred to as a(n) _____.

• A) theory
• B) hypothesis
• C) opinion
• D) hunch

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Definitions:

Net Profit Margin

A financial metric that shows the percentage of revenue remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from total revenue.

Gross Margin

The difference between sales revenue and the cost of goods sold, representing the profit before deducting operating expenses.

Accounts Receivable Turnover

A financial metric indicating how many times a business collects its average accounts receivable during a period, reflecting credit sales efficiency.

Average Collection Period

The average number of days it takes for a company to receive payment from its customers for invoices issued.