Suppose We Are Considering the Relationship Between Two Variables Y

question 627

Multiple Choice

Suppose we are considering the relationship between two variables y and x. y is measured on the y- axis and x is measured on the x- axis, and the relationship between then is a line. Suppose that the slope of the line is greater than 1. This slope means that

• A) a change in x is associated with an equal change in y.
• B) a change in x is associated with a smaller change in y.
• C) a change in x is associated with no change in y.
• D) a change in x is associated with a bigger change in y.

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Definitions:

Net Assets

The total assets of an entity minus its total liabilities, representing the owners' equity.

Fair Market Value

The estimated price at which an asset or service would change hands between a willing buyer and seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.

Carrying Value

The original cost of an asset or liability adjusted for depreciation, amortization, or impairment, reflecting its current book value.

Journal Entry

A record in the accounting ledger that shows a business transaction, involving a debit to one or more accounts and a credit to another to balance.