A Credit to the Accounts Receivable Account

question 135

Multiple Choice

A credit to the accounts receivable account

• A) indicates an increase in the amount owed by customers.
• B) indicates a decrease in the amount owed by customers.
• C) is an error.
• D) must be accompanied by a debit to an liability account.

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Definitions:

Chi-squared Test

A statistical test used to determine if there is a significant difference between observed frequencies and expected frequencies in categorical datasets.

Chi-squared Distribution

A statistical distribution that is used primarily in hypothesis testing and is derived from the sum of squared standard normal deviates.

Proportion

A statistical measure that indicates the fraction of the total number of items in a certain category or characteristic.

Two-tail Test

A statistical test that is used to determine if there is a significant difference between a sample and a particular population mean, where the critical region is split between both tails of the distribution.