If a Liability Is Dependent on a Future Event It

question 23

Multiple Choice

If a liability is dependent on a future event it is called a

• A) potential liability.
• B) hypothetical liability.
• C) probabilistic liability.
• D) contingent liability.

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Definitions:

Hope Diamond

A large and famous blue diamond, renowned for its size and history of bringing misfortune to its owners, now housed in the Smithsonian Institution.

Abstract

An idea or concept formed by mentally isolating particular qualities; pertaining to theoretical considerations rather than practical.

Beverage

A beverage is any type of drinkable liquid.

Liquid

A state of matter characterized by a fixed volume but no fixed shape, with molecules that are closely packed but can move past each other.