Which of the Following Is the Best Reason for Keeping

question 45

Multiple Choice

Which of the following is the best reason for keeping subsidiary ledger accounts current?

• A) To compute liquidity ratios
• B) To prepare financial statements
• C) To check if a sale will exceed a customer's credit limit
• D) All of the above

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Definitions:

Correlation

A measure that describes the extent to which two variables change together, but does not necessarily indicate that one causes the other to occur.

Intelligence

Intelligence is the capacity for learning, reasoning, understanding, and similar forms of mental activity; aptitude in grasping truths, relationships, facts, meanings, etc.

Creativity

The ability to generate novel and useful ideas, solutions, or products through imaginative thought processes and original thinking.

Positive Correlation

A relationship between two variables where both either increase or decrease together.