Correlation and Covariance Can Be Used to Examine Relationships Between

question 24

True/False

Correlation and covariance can be used to examine relationships between numeric variables as well as for categorical variables that have been coded numerically.

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Definitions:

Direct Method

In financial accounting, refers to a way of allocating service department costs directly to producing departments without intermediate allocations.

Cash Basis

A bookkeeping practice in which income and outgoings are documented at the point of actual transaction, instead of when they are accrued.

Investing Activities

Transactions involving the purchase or sale of long-term assets and investments not related to the entity's primary business operations.

Financing Activities

Activities that result in changes in the size and composition of the equity capital and borrowings of an entity, typically reported in the cash flow statement.