Which of the Following Would Appear on the Balance Sheet

question 149

Multiple Choice

Which of the following would appear on the balance sheet as a current liability?

• A)A loss that could be expected upon the occurrence of a strike by employees.
• B)Potential damages from the risk of explosions in a fireworks factory.
• C)Payments that are likely to occur for pension benefits to employees.
• D)A possible loss from a threatened lawsuit.

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Definitions:

Exercise Price

The cost at which an options contract holder has the right to purchase (in the case of a call option) or sell (with a put option) the base asset.

Put Option

It's a financial arrangement granting someone the choice, but excluding the duty, to dispose of an allocated quantity of an essential asset at a certain value within an allotted interval.

Buyer

An individual or entity that purchases goods or services in a transaction.

Strike Price

The specified price at which an options contract can be exercised.