A Company Has a Ten Million Dollar Credit Balance in the Payable

question 89

Multiple Choice

A company has a ten million dollar credit balance in the payable accounts.Given this information,which of the following is a TRUE statement?

• A)It is NOT normal for payable accounts to have a credit balance.
• B)Not enough information provided,since normal account balances are different for each company.
• C)It is ALWAYS normal for payable accounts to have a credit balance.
• D)Payable accounts shouldn't be this high,so this is not a normal balance.

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Definitions:

Regression Trend Line

A line graphed in scatter plot data to represent the average direction of the data points and understand the relationship between variables.

Regression Technique

A statistical method used to analyze the relationship between a dependent variable and one or more independent variables.

Linear Trend Line

A straight line that best represents the data on a scatter plot, showing the direction and rate of a linear relationship between two variables.

Regression Analysis

A set of statistical processes for estimating the relationships among variables, typically used to determine how the typical value of a dependent variable changes when any one of the independent variables is varied.