Generally Speaking, If Two Variables Are Unrelated (As One Increases

question 34

Multiple Choice

Generally speaking, if two variables are unrelated (as one increases, the other shows no pattern) , the covariance will be:

• A) a large positive number
• B) a large negative number
• C) a positive or negative number close to zero
• D) a positive or negative number close to 100
• E) none of these

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Definitions:

Straight-Line Amortization

An alternative method of amortizing bond discounts and premiums that allocates an equal dollar amount to each interest period. It is only permitted by GAAP under specific circumstances.

Bond Payable

A long-term liability representing money owed by a company to bondholders, to be repaid at a certain date.

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting that is not necessarily aligned with the calendar year.

Assumptions

Fundamental beliefs or statements taken for granted in the planning and decision-making process.