Small Correlations,for Example 0.08 or 0.10

question 16

Multiple Choice

Small correlations,for example 0.08 or 0.10,

• A) may be statistically significant.
• B) cannot be statistically significant.
• C) indicate cause and effect between the two correlated variables.
• D) both a and c

---

Definitions:

Indirect Method

A technique used in cash flow statements to adjust net income for the changes in non-cash accounts to compute cash flow from operating activities.

Accrual-Basis Operating Income

The measure of a company’s operating profit that includes all earned revenue and incurred expenses, recognized as they are earned or incurred, not when cash is exchanged.

Working Capital Accounts

Accounts representing the operating liquidity available to a business, encompassing accounts receivable, accounts payable, inventory, etc.

Operating Activities

Business activities and transactions related to the primary operations of a company, including revenue generation and expenses.