Which of the Following Statements Can Explain Why an Association

question 215

Multiple Choice

Which of the following statements can explain why an association between Event A and Event B may not imply causality from A to B?

• A)The observed association may be coincidental.
• B)There may be a third variable that is responsible for causing both events.
• C)Causality may run from Event B to Event A instead of in the opposite direction.
• D)All of the answers can explain why an association between Event A and Event B may not imply causality from A to B.

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Definitions:

Gross Method

An accounting method for recording purchases at the invoice amount without deducting any discounts offered.

Periodic Method

An inventory accounting system where updates to inventory accounts and cost of goods sold are made periodically at the end of a reporting period.

Journal Entries

Recorded transactions in the accounting ledger that reflect the financial activities of a business.

Voucher

A document or record acting as evidence for a transaction, or as an authorization for payment.