A Contingent Liability

question 98

Multiple Choice

A contingent liability

• A) Is another name for a long-term liability
• B) Only arise when accounts receivable are factored
• C) Arise when a note receivable is discounted without recourse
• D) Is an obligation to make a future payment if a certain future event occurs
• E) Is an obligation to make a future payment if an uncertain future event occurs

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Definitions:

Organisations

Structured groups of people who come together to achieve specific goals, characterized by having systems of governance and processes.

Units

A measure of quantity or amount, used in various contexts such as manufacturing, accounting, or academic grading.

Teams

Groups of individuals working collaboratively towards a common goal or objective.