Figure 2-9 -What Happens When 2 Variables Have a Negative Correlation

question 140

Multiple Choice

Figure 2-9
-What happens when 2 variables have a negative correlation?

• A)They tend to move in opposite directions.
• B)They tend to move in the same direction.
• C)One variable will move while the other remains constant.
• D)The movement of the two variables is unpredictable.

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Definitions:

Consolidated Statement

A combined financial representation of a parent company and its subsidiaries, showcasing the total assets, liabilities, equity, income, expenses, and cash flows of the entire group.

Carrying Value

The original cost of an asset adjusted for depreciation, amortization, or impairment costs on the company's balance sheet.

Cash Flows

The sum of money flowing in and out of a company, particularly impacting its liquidity.

Consolidated Statement

Financial statements that aggregate the financials of a parent company and its subsidiaries, providing a comprehensive overview of the economic activities of the entire group.