In the Example Described in Your Text, Mariella May Have

question 21

Multiple Choice

In the example described in your text, Mariella may have been troubled because significant college stress triggered her predisposition for depression.However, her friend had the same type of predisposition and

• A)showed no symptoms of depression.
• B)experienced the same outcome.
• C)failed out of college.
• D)developed an anxiety disorder.

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Definitions:

Contingent Liability

A potential obligation that may arise depending on the outcome of a future event, not recognized on the balance sheet unless occurrence is probable and the amount can be reasonably estimated.

Estimated Liability

A potential financial obligation that may arise in the future, recognized in accounting based on probable expenditures.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes (EBIT) to its interest expenses.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, usually expressed in the form of interest payments on loans, bonds, or credit lines.