Which of the Following Is an Example of a Contingent

question 116

Multiple Choice

Which of the following is an example of a contingent liability?

• A) Obligations related to product warranties.
• B) Possible receipt from a litigation settlement.
• C) Pending court case with a probable favorable outcome.
• D) Tax loss carryforwards.

---

Definitions:

Basic Subsistence

The minimum resources necessary for a person to live, including food, water, and shelter.

Older Adults

Individuals who are in the later stage of their life, often defined as being 65 years or older.

Low Income Families

Households earning significantly less than the average income, often qualifying them for certain types of government assistance.

Full Time

Employment status where an individual works a minimum number of hours defined by their employer as full-time, typically around 40 hours per week.