If the Outcome of Event a Is Not Affected by Event

question 129

Multiple Choice

If the outcome of event A is not affected by event B,then events A and B are said to be

• A)mutually exclusive.
• B)independent.
• C)collectively exhaustive.
• D)None of the above.

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Definitions:

Return on Assets Ratio

A financial metric indicating how profitable a company is relative to its total assets, calculated by dividing net income by total assets.

Accruing Interest Expense

The process of recording interest expense that has been incurred but not yet paid in the financial statements.

Stockholders' Equity

The portion of a company's assets that can be claimed by its owners, equal to total assets minus total liabilities.

Current Assets

Assets that are expected to be converted into cash, sold, or used up within one year or within the normal operating cycle of the business, whichever is longer.