If Variables Change in the Opposite Direction, What Type of Correlation

question 12

Multiple Choice

If variables change in the opposite direction, what type of correlation is this called?

• A) Positive correlation
• B) Negative correlation
• C) Positive causation
• D) Negative causation

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Definitions:

Accounts Credited

Accounts that have been increased in a double-entry bookkeeping system due to the recording of revenues, gains, liabilities, or owner's equity.

Accounts Debited

Refers to the entries made on the left side of an account, signifying an increase in assets or expenses or a decrease in liabilities, equity, or revenue.

Horizontal Analysis

A method of financial examination that looks at past financial data across multiple reporting periods to detect patterns and trends in growth.

Income Statements

A financial statement that shows a company's revenues, expenses, and profits or losses over a particular period.