Since Receivables and Payables Both Result from Sales Transactions, a Firm

question 8

True/False

Since receivables and payables both result from sales transactions, a firm with a high receivables-to-sales ratio must also have a high payables-to-sales ratio.

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Definitions:

Null Hypothesis

A hypothesis positing no effect or no difference; it serves as the default assumption to be tested against the alternative hypothesis.

Directional Hypothesis

A hypothesis that specifies the expected direction of the relationship between variables, indicating an increase or decrease.

Null Hypothesis

A statement that indicates no effect or no difference, and is the hypothesis that researchers seek to nullify or disprove through statistical analysis.

Alternative Hypothesis

An assumption that suggests there is a significant difference or effect, contrary to the null hypothesis.