​Which of the Following Relationships Is Not a Functional Relationship

question 34

Multiple Choice

​Which of the following relationships is not a functional relationship? ​

• A) ​The cost of rst class postage is determined by the weight of the package.
• B) ​The amount of a particular drug in the blood stream is determined by the length of time since the drug had been administered.
• C) ​The amount of sales tax one pays on a durable good is determined by the cost of the durable good.
• D) ​The cost of purchasing a particular pattern of new carpet is determined by the area of carpet that is purchased.
• E) ​The number of hours a college student studies per week is determined by the amount of tuition she pays out of pocket.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available for daily operations.

Noncurrent Assets

Long-term assets that are not expected to be converted into cash within a year, such as property, plant, and equipment.

Working Capital

Current assets minus current liabilities, indicating the short-term liquidity of a business.

Stockholders' Equity

The net value that represents the owners' interest in a company, calculated as total assets minus total liabilities.