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Describe the four different types of major types of stress and provide an example of each.
Noncollectibility Receivables
Accounts receivable that are considered unlikely to be collected by a business.
Gain Contingencies
Possible gains or income that a business might receive, contingent upon future events that can't be predicted with certainty.
Footnotes
Supplementary notes at the bottom of financial statements providing additional detail about data or items on the statements.
Off-Balance-Sheet Financing
A form of financing in which companies do not record certain assets or liabilities on the balance sheet to improve financial ratios and maintain compliance with debt covenants.
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