When Variable a Rises by 10 Units,variable B Rises by 15

question 161

Multiple Choice

When variable A rises by 10 units,variable B rises by 15 units.The slope of the line describing this relationship is

• A)always 2/3.
• B)either 2/3 or 1.5, depending on which variable goes on which axis of the graph.
• C)either 1.5 or -1.5, depending on which variable goes on which axis.
• D)always -1.5.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues, also known as the bottom line or net profit.

Shares Outstanding

The total number of a company's shares currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.

Statement Of Comprehensive Income

The statement of comprehensive income is a financial statement that includes all changes in equity during a period except those resulting from investments by and distributions to owners.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life, reflecting its loss of value over time.