If Interpreting Factors Using the Rotated Factor Matrix,a Negative Coefficient

question 43

True/False

If interpreting factors using the rotated factor matrix,a negative coefficient for a negative variable (prevention of tooth decay is not important)would lead to a positive interpretation (prevention of tooth decay is important).

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Definitions:

Purchases Discounts

Purchases discounts are reductions in price given by suppliers to buyers for early payment of invoices.

Credit Memo

A document issued by a seller to a buyer, reducing the amount that the buyer owes to the seller typically due to a return or an error in billing.

Recognition of Cost

The accounting principle that requires expenses to be recorded in the period in which they are incurred, regardless of when the payment is made.

Merchandise Sold

Merchandise sold refers to the goods that have been purchased by customers from a company, resulting in revenue.