As Ms Carlson Returned the Student Papers She Had Graded, She

question 67

Multiple Choice

As Ms. Carlson returned the student papers she had graded, she was thinking about the fact that she had forgotten to pick up her dry cleaning on the way to school. As a result of her thoughts, her face had a look of displeasure on it as she handed Donald's paper to him. Even though the paper had "A" and "Good job!" written at the top of it, Donald saw Ms. Carlson's expression and concluded that she must not like him. Donald's mistaken belief is evidence of his adolescent _____.

• A) modesty
• B) moral reasoning
• C) egocentrism
• D) logic

---

Definitions:

Solvency

The ability of an entity to meet its long-term financial commitments and debts as they come due.

Liquidity

A measure of how quickly and easily an asset can be converted into cash without significantly affecting its price.

Profitability

A measure of the efficiency and success of a business in generating profits from its operations over a period of time.

Horizontal Analysis

A financial analysis technique that examines the changes in the amounts of specific financial statement items over a period of time.