If There Is a Direct Relationship Between Two Variables

question 413

Multiple Choice

If there is a direct relationship between two variables

• A) the graph of the relationship will be upward-sloping.
• B) the graph of the relationship will be downward-sloping.
• C) the slope of the line (or the slope of a tangent line to the curve) will be negative.
• D) Both answers A and C are correct.

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Definitions:

Accrued Liabilities

Accrued liabilities are financial obligations that a company has incurred but has not yet paid or recorded in its financial statements.

Direct Method

A cost allocation method that assigns service department costs directly to producing departments without any intermediate allocations.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid.

Operating Activities

Business activities that relate directly to the production, sale, and delivery of a company's products or services, generating revenue.