If Variables Change in the Opposite Direction, What Type of Correlation

question 72

Multiple Choice

If variables change in the opposite direction, what type of correlation is this called?

• A)positive correlation
• B)negative correlation
• C)positive causation
• D)negative causation

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Definitions:

Total Liabilities

Total Liabilities represent the sum of all financial obligations a company owes to outside parties, including loans, accounts payable, and mortgages.

Note Payable

A financial obligation or loan evidenced by a written promise to pay a specific amount on a future date or over a certain period.

Current Liability

Financial obligations or debts that a company is expected to settle within one year or within its normal operating cycle.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle, whichever is longer.