Which of the Following Correlation Coefficient Values Indicates the Strongest

question 2

Multiple Choice

Which of the following correlation coefficient values indicates the strongest relationship between two variables?

• A) +.50
• B) -.80
• C) +.70
• D) -.10

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Definitions:

Future Cash Flows

Estimates of the amounts of cash that a company expects to receive or pay out in the future, important for budgeting, forecasting, and valuation.

Interest-Bearing Note

A debt instrument that pays interest to the holder at a fixed or variable interest rate until the principal amount is repaid.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the correct period.

Interest Expense

The expense recorded by a business for the funds it has borrowed, categorized as a non-operating expense in the income statement.