The Observation That Additions to Fixed Assets Are Lumpier Than

question 101

Multiple Choice

The observation that additions to fixed assets are lumpier than additions to current assets indicates that:

• A) fixed assets depreciate over time.
• B) fixed assets can be acquired only through external funding.
• C) current assets can be acquired in smaller increments.
• D) dollar for dollar, fixed assets are more expensive than current assets.

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Definitions:

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together, showing the strength and direction of their relationship.

Significant Correlation

A relationship between variables that is strong enough to not be attributed to chance, according to statistical tests.

Correlation Coefficient

A numerical index that reflects the degree of relationship between two variables ranging from -1 (perfect negative correlation) to +1 (perfect positive correlation).

Research Question

A clear, focused, concise, and answerable question that guides a study or research project.