Canadian Accounting classiﬁes accounts receivable as "current", "late", and "not collectible".
Industry ﬁgures show that 60% of A/R are current, 30% are late, and 10% are uncollectible. A law
ﬁrm in Markham Ontario has 500 accounts receivable: 310 are current, 125 are late and 65 are not
Collectible. Are these numbers in agreement with the industry distribution?
Using the data from this Megastat printout, you determine:
A) the Markham ﬁrm's data reﬂect the national average, when tested at the 0.10 level of signiﬁcance.
B) the Markham ﬁrm's data reﬂect the national average, when tested at the 0.05 level of signiﬁcance.
C) the Markham ﬁrm's data reﬂect the national average, when tested at the 0.01 level of signiﬁcance.
D) the Markham ﬁrm's data do not reﬂect the national average, when tested above a 0.01 level of signiﬁcance.

Question

Canadian Accounting classiﬁes accounts receivable as "current", "late", and "not collectible".
Industry ﬁgures show that 60% of A/R are current, 30% are late, and 10% are uncollectible. A law
ﬁrm in Markham Ontario has 500 accounts receivable: 310 are current, 125 are late and 65 are not
Collectible. Are these numbers in agreement with the industry distribution? 
Using the data from this Megastat printout, you determine:
A) the Markham ﬁrm's data reﬂect the national average, when tested at the 0.10 level of signiﬁcance. 
B) the Markham ﬁrm's data reﬂect the national average, when tested at the 0.05 level of signiﬁcance. 
C) the Markham ﬁrm's data reﬂect the national average, when tested at the 0.01 level of signiﬁcance. 
D) the Markham ﬁrm's data do not reﬂect the national average, when tested above a 0.01 level of signiﬁcance.

Quizplus · Accepted Answer

the Markham ﬁrm's data do reﬂect the national average, when tested above a 0.01

Canadian Accounting Classiﬁes Accounts Receivable as "Current", "Late", and "Not