Which of the Following Conditions Are Most Indicative of a Company

question 139

Multiple Choice

Which of the following conditions are most indicative of a company that is effectively managing its cash?

• A) Low accounts receivable, low inventory, high accounts payable
• B) High accounts receivable, low inventory, high accounts payable
• C) Low accounts receivable , high inventory, low accounts payable
• D) High accounts receivable, high inventory, low accounts payable

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Definitions:

Population Average

The mean value of a characteristic within an entire population.

Standard Error

The standard deviation of the sampling distribution of a statistic, often used to estimate the accuracy of a sample mean compared to the population mean.

Sample Mean

The average of all observed values in a sample from a population.

Level of Significance

A statistical measure that determines the threshold at which a hypothesis test results in a rejection of the null hypothesis.