An Example of a Contingent Liability Is

question 30

Multiple Choice

An example of a contingent liability is

• A)a bond that can be converted into common stock.
• B)any interest-bearing liability.
• C)a bond that was sold at a discount.
• D)the unrealized loss from the reduction in the fair value of a long-term liability.
• E)a lawsuit being filed against a company.

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Definitions:

Psychological Dependence

The strong desire to repeat the use of a drug for emotional reasons, such as a feeling of well-being and reduction of stress.

Drug Addiction

A chronic disease characterized by compulsive, or uncontrollable, drug seeking and use despite harmful consequences and changes in the brain, which can be long-lasting.

Depressants

Psychoactive drugs that slow down mental and physical activity.

Activation-Synthesis Theory

Theory that dreaming occurs when the cerebral cortex synthesizes neural signals generated from activity in the lower part of the brain and that dreams result from the brain’s attempts to find logic in random brain activity that occurs during sleep.