A Direct Relationship Occurs When

question 253

Multiple Choice

A direct relationship occurs when

• A) the two variables being compared change in opposite directions, or when one goes up the other goes down.
• B) a change in one of the variables causes a change in the other variable in any direction.
• C) the two variables being compared change in the same direction, or when one goes up the other also goes up.
• D) the two variables have no identifiable relationship with each other.

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Definitions:

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are listed directly.

Periodic Inventory System

An accounting method where inventory is physically counted and valued at specific intervals, typically at the end of an accounting period.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated before the next period begins.

Merchandise Purchases

Transactions where a business acquires goods to be sold later, often at a profit.