Which of These Statements Is True

question 65

Multiple Choice

Which of these statements is true?

• A) The age of a firm's cash will affect the current ratio level.
• B) The age of a firm's accounts receivable will affect the current ratio level.
• C) The age of a firm's fixed assets will affect the fixed asset turnover ratio level.
• D) The age of a firm's fixed assets will affect the current ratio level.

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Definitions:

Statistic

A statistic is a single measure or value that is derived from a sample of data, used to estimate or infer properties of the population from which the sample was drawn.

Alpha Value

A specified threshold in hypothesis testing that represents the maximum probability of wrongly rejecting the null hypothesis.

Rejecting Null Hypothesis

The decision in hypothesis testing that the evidence is strong enough to conclude a significant effect exists.

Retaining Null Hypothesis

The decision in hypothesis testing that there is not enough evidence to reject the null hypothesis, implying the observed data does not significantly differ from what was expected.