Which of the Following Activities Will Increase the Short-Term Net

question 76

Multiple Choice

Which of the following activities will increase the short-term net cash flow for a firm?

• A)Increase a cash bonus for employees.
• B)Increase the firm's days sales outstanding ratio without an increase in sales.
• C)Write off old accounts receivable that are considered uncollectible.
• D)Increase the average amount of time the firm takes to pay accounts.
• E)Increase the time you allow the firm's customers to pay for goods.

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Definitions:

Test Statistic

A standardized value calculated from sample data during a hypothesis test that is used to make a decision about the null hypothesis.

P-value

The probability of obtaining test results at least as extreme as the ones observed during the test, assuming the null hypothesis is true.

Test Statistic

This is a value, derived from sample data, used in hypothesis testing to determine whether to reject the null hypothesis.

Null Hypothesis

The theory suggesting that any noted discrepancies between certain groups are merely the result of sampling or experimental inaccuracies, asserting no substantial variance exists.