An Estimated Liability

question 68

Multiple Choice

An estimated liability

• A)Is an unknown liability of a certain amount
• B)Can be the result of a lawsuit
• C)Is a liability that may occur if a future event occurs
• D)Is a known obligation of an uncertain amount
• E)None of these

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Definitions:

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances.

Vacant Possession

An obligation to deliver possession of vacant premises to a tenant at the beginning of a lease period.

Quiet Enjoyment

The right of a tenant or property owner to enjoy their property without interference or nuisance from others.

Lease Period

refers to the duration of time for which a lease agreement is valid, granting the lessee the right to use the leased asset.