When Variable a Correlates Highly with B, Then

question 125

Multiple Choice

When variable A correlates highly with B, then

• A) A has caused B
• B) B has caused A
• C) variable B correlates highly with A
• D) none of these

---

Definitions:

Days' Sales in Receivables

A financial ratio that measures the average number of days that receivables remain outstanding before being collected.

Trade Receivables

Amounts owed to a business by its customers for goods or services delivered on credit.

Sales Transactions

The exchange of goods or services for payment between a seller and buyer, typically documented for financial record-keeping.

Allowance Method

An accounting technique used to account for bad debts by estimating uncollectible accounts at the end of each period.