When Two Variables Have a Positive Correlation

question 59

Multiple Choice

When two variables have a positive correlation,

• A)they tend to move in opposite directions.
• B)they tend to move in the same direction.
• C)one variable will move while the other remains constant.
• D)the variables' values are never negative.

Understand the effects of stock splits and stock dividends on retained earnings and equity structure.

Know the classification and implications of different share types in a corporation’s financial statements.

Distinguish between the effects of stock dividends, stock splits, and cash dividends on a corporation's financial statements.

Diagnose the impact of share transactions (issuance, repurchase) on the financial position of a corporation.

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Definitions:

Superposition

A principle in geology stating that in an undeformed sequence of sedimentary rocks, each layer is older than the one above it and younger than the one below it.

Cross-Cutting Relations

The principle that a geologic unit or feature is older than a rock or feature that crosscuts it.

Igneous Intrusion

The process where magma from the Earth's mantle cuts through or intrudes into the Earth's crust, eventually cooling and solidifying to form igneous rock.

Cross-Cutting Relations

A principle in geology that an igneous intrusion or fault must be younger than the rocks it intrudes or displaces.