Consider the 3X2 Contingency Table Below

question 33

Multiple Choice

Consider the 3X2 contingency table below. Compute the expected frequencies in row 3.

• A)20,30
• B)15,15
• C)12,18
• D)9,21

---

Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to run its operations.

Covenant Compliance

Adherence to the terms and conditions specified in a debt agreement, often including financial ratios or requirements that borrowers must meet.

Accounting Principles

The standardized rules and guidelines under which financial statements are prepared, widely known as Generally Accepted Accounting Principles (GAAP).

Financial Covenants

Conditions set by lenders in loan agreements that the borrower must adhere to, designed to maintain the borrower's financial stability and safeguard the loan repayment.