Which of the Following Statements Is Correct

question 56

Multiple Choice

Which of the following statements is correct?

• A) Slope is the ratio of the vertical change (the rise or fall) to the horizontal change (the run).
• B) A direct relationship is one in which two variables change in the opposite direction.
• C) An inverse relationship is one in which two variables change in same directions.
• D) An independent relationship is one in which two variables are upward sloping.

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Definitions:

Shareholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing the owners' claim on the business.

Cash Consideration

The amount of cash that is paid or received during transactions, such as acquisitions or sales of assets.

Outstanding Shares

The total number of shares of a corporation that have been issued and are held by shareholders, excluding treasury shares.

Contributed Surplus

An account on a company's balance sheet representing the excess amount investors pay over the par value of the company's shares.