Given That Events a and B Are Mutually Exclusive and P(A)

question 9

Multiple Choice

Given that events A and B are mutually exclusive and P(A) = 0.5 and P(B) = 0.7, are A and B independent?

• A) no
• B) yes
• C) cannot be determined

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Definitions:

Bonds Payable

A financial liability representing money a company owes to bondholders, to be repaid at a specified future date.

Interest Payable

The amount of interest expense that has been incurred by a company but has not yet been paid to the creditor; it is a liability on the balance sheet.

Current Liability

Obligations that a company needs to settle within one fiscal year or its current operating cycle, whichever is longer, often including accounts payable, short-term loans, and accrued expenses.

Accounts Payable

Amounts a company owes to creditors for items or services purchased on credit.