Which of the Following Statements Is False

question 31

Multiple Choice

Which of the following statements is false?

• A) The aging schedule is also sometimes augmented by analysis of the payments pattern, which provides information on the percentage of monthly sales that the firm collects in each month after the sale.
• B) Because accounts receivable days can be calculated from the firm's financial statement, outside investors commonly use this measure to evaluate a firm's credit management policy.
• C) If the aging schedule gets "top-heavy" - that is, if the percentages in the upper half of the schedule begin to increase - the firm will likely need to revisit its credit policy.
• D) Seasonal sales patterns may cause the number calculated for the accounts receivable days to change depending on when the calculation takes place.

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Definitions:

Test Statistic

A calculated value used to make a decision regarding a hypothesis test; it measures the degree of agreement between a sample data and the null hypothesis.

Sample Proportion

The ratio of members in a statistical sample that have a particular attribute to the total number of members in the sample.

Null Hypothesis

The null hypothesis is a statement used in statistics that proposes there is no significant difference or effect, serving as the starting point for hypothesis testing.

Alternative Hypothesis

A statistical hypothesis that proposes a difference or effect, contrasting the null hypothesis.