Which Statement About Contingent Liabilities Is Correct

question 5

Multiple Choice

Which statement about contingent liabilities is correct?

• A)It is a possible obligation that arises from past transactions and events.
• B)It is an obligation that arises from past transactions and events.
• C)It involves uncertainty about either the timing or amount of payment.
• D)It is a condition that depends upon the outcome of an anticipated event.

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Definitions:

Religion

A system of faith and worship often involving belief in a supreme being or beings and a guiding philosophy or set of doctrines.

Happiness

A state of well-being and contentment characterized by positive emotions.

Hobbes

Thomas Hobbes was a 17th-century English philosopher known for his work in political philosophy, particularly his book "Leviathan" which argues for a social contract and rule by an absolute sovereign.

Charity

The act of giving help, typically in the form of money, to those in need.