Which Statement Is Not Correct

question 63

Multiple Choice

Which statement is not correct?

• A)A business will prefer a shorter settlement time for its accounts receivable rather than a longer settlement period.
• B)An asset turnover figure of 1.5 times is preferred to a figure of 1.2 times.
• C)A business will prefer a longer average inventory turnover time rather than a shorter turnover time.
• D)None of the statements, i.e., all are correct.

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Definitions:

Standard Deviation

An indicator of the extent of variability or spread among a collection of numbers, showing the degree to which these numbers differ from their average.

Significance Level

Significance level, often denoted by alpha, is the probability of rejecting the null hypothesis when it is true, serving as a threshold for determining statistical significance.

Power of a Test

The probability that a statistical test will correctly reject a false null hypothesis; a measure of a test's ability to detect an effect when there is one.

Null Hypothesis

A statement used in statistics that proposes there is no significant difference or effect, and any observed difference is due to sampling or experimental error.