Alejandro Is Lost in the Woods and Thinks He Hears

question 42

Multiple Choice

Alejandro is lost in the woods and thinks he hears a bear.He climbs a tree to see if he can find a way home.A week later,he tells his friend with absolute sincerity that he climbed the tree to escape the bear.Alejandro is experiencing:

• A) confabulation
• B) false recognition
• C) absentmindedness
• D) memory bias

---

Definitions:

Adjusting Entry

An accounting record made to update the financial statements to reflect transactions that have occurred but are not yet recorded.

Interest Expense

The cost incurred by an entity for borrowed funds, usually presented as an expense in the income statement.

Times Interest Earned Ratio

A metric that measures a company's ability to meet its debt obligations by comparing income before interest and taxes to interest expenses.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue, representing the company's bottom line.