Which of the Following Statements Is Not True

question 6

Multiple Choice

Which of the following statements is not true?

• A) An aging schedule shows only overdue accounts.
• B) An aging schedule shows the probability that a 67-day account will be unpaid when it is a 68-day account.
• C) Average collection period data is somewhat flawed if sales are seasonal.
• D) Collection efforts may involve legal action.
• E) Investments in accounts receivable equal average daily sales times average collection period.

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Definitions:

Positivism

A philosophical theory that asserts that genuine knowledge is based on natural phenomena and their properties and relations as verified by empirical sciences.

Rationalism

A philosophy that emphasizes reason and knowledge acquisition through deductive reasoning and logical analysis, rather than empirical evidence.

Factual Analysis

Examination of data to discover verifiable facts and establish their validity.

Hypothesis

A testable prediction or statement about the relationship between two or more variables that can be tested through research.