All Else Held Constant, Which of These Statements Is Correct

question 91

Multiple Choice

All else held constant, which of these statements is correct concerning the accounts payable period?

• A)The accounts payable period is equal to 360/(Sales/Average accounts payable).
• B)A decrease in the accounts payable period will increase the operating cycle.
• C)An increase in the accounts payable period will decrease the cash cycle.
• D)A decrease in the accounts payable period will decrease the operating cycle.
• E)An increase in the accounts payable turnover rate decreases the cash cycle.

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Definitions:

Sampling Distribution

The probability distribution of a statistic obtained from a large number of samples drawn from a specific population.

Sample Size

The number of observations or dataset elements selected from a population for the purpose of statistical analysis.

Sample Means

The average value of a set of samples from a population.

Freshmen

First-year students at a high school, college, or university.