Which of the Following Is Not a Condition Needed to Establish

question 28

Multiple Choice

Which of the following is not a condition needed to establish causality?

• A) There needs to be an empirical association between the independent and dependent variable.
• B) The relationship between variables has to be spurious.
• C) Temporal precedence needs to be established.
• D) The relationship between variables has to be nonspurious.
• E) All of these are conditions needed to establish causality.

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Definitions:

Operating Activities

The day-to-day activities of a business involved in producing and delivering its products and services, generating cash flows from these primary activities.

Income Tax Expense

The total amount of income tax a company is obligated to pay to the government, based on its taxable income for a particular period.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid out, respectively.

Internal Rate

This term might be incomplete or unclear; however, it is possibly referring to the internal rate of return (IRR), which is a metric used in financial analysis to estimate the profitability of potential investments.