If a Company Can Stretch Its Accounts Payable Without Damaging

question 124

Multiple Choice

If a company can stretch its accounts payable without damaging its credit rating, it is effectively ___________ its operating cycle.

• A) increasing
• B) reducing
• C) not affecting
• D) not able to determine.

---

Definitions:

Goodness-of-fit Test

A statistical test used to determine how well observed data match the expected distribution in the population.

Distribution

In statistics, refers to the way in which values of a variable are spread or distributed across a range.

Null Hypothesis

It is a statistical hypothesis that asserts there is no significant effect or difference, serving as a default assumption until evidence suggests otherwise.

Normally Distributed

A symmetric probability distribution centered around the mean, illustrating that occurrences are more frequent near the mean and less frequent as they move away from it.