The Covariance May Be Either Positive or Negative

question 66

True/False

The covariance may be either positive or negative.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, usually a fiscal quarter or year, to calculate net income.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the correct period.

Net Income

The net earnings of a company, calculated by deducting all operating costs and taxes from the total income.

Adjusting Entries

Entries recorded in the journals at the conclusion of a fiscal period to distribute revenues and costs to the timeframe in which they genuinely took place.