All of the Following Statements Regarding Uncertainty in Liabilities Are

question 114

Multiple Choice

All of the following statements regarding uncertainty in liabilities are true except:

• A)Liabilities can involve uncertainty in whom to pay.
• B)A company can create a liability with a known amount even when the holder of the note may not be known until the maturity date.
• C)A company can have an obligation of a known amount to a known creditor but not know when it must be paid.
• D)A company only records liabilities when it knows whom to pay,when to pay,and how much to pay.
• E)A company can be aware of an obligation but not know how much will be required to settle it.

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Definitions:

Hackers

Individuals who exploit weaknesses in digital systems or networks, often for malicious purposes, but sometimes also to improve security or for non-malicious reasons.

Duty to Defend

An obligation, often found in insurance contracts, requiring the insurer to provide legal defense against claims covered by the policy.

Insurer

An entity that provides insurance, offering protection against financial loss in exchange for premiums.

Insured

The insured refers to the individual or entity covered under an insurance policy, receiving protection against specified loss or damage.