Adding a Third Variable to a Two Dimensional Graph

question 8

Multiple Choice

Adding a third variable to a two dimensional graph:

• A) makes it impossible to interpret the graph.
• B) helps to show the effect of factors that are not on the graph.
• C) creates unnecessary complexity and should be avoided.
• D) provides a point of intersection.

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Definitions:

Bonus Method

A method in accounting for partnerships where a new partner's investment is recorded at an amount that is different from the stated value of the partnership's net assets, affecting the capital accounts of the existing partners.

Journal Entry

A journal entry is a record of a business transaction in the accounting books, detailing the financial effects of that transaction.

Net Income

The company's net income following the deduction of all costs and taxes from its earnings.

Income-Sharing Ratio

The proportionate distribution of profit or loss among partners in a partnership according to their agreed percentages.