If Two Variables Are Related and One Variable Increases as the Other

question 113

Multiple Choice

If two variables are related and one variable increases as the other variable decreases, they are likely to have:

• A) a negative correlation.
• B) a positive correlation.
• C) no correlation.
• D) no reliability.

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Definitions:

ACP

In financial contexts, ACP often stands for "Average Collection Period," representing the average number of days it takes for a company to receive payments from its customers.

Receivables Balance

The cumulative sum of money that customers owe to a business for products supplied or services rendered but not yet compensated for.

Credit Sales

Transactions where goods or services are sold and payment is deferred to a later date, contributing to a company's accounts receivable.

COGS

Cost of Goods Sold; the direct costs associated with the production of goods sold by a company, including materials and labor.