A Contingent Liability

question 37

Multiple Choice

A contingent liability:

• A)is always a specific amount.
• B)is an obligation arising from the purchase of goods or services on credit.
• C)is an obligation not requiring a future payment.
• D)is a potential obligation that depends on a future event.

---

Definitions:

Capital Account

The capital account records the exchanges of financial assets and liabilities between a country and the rest of the world, including direct investment and loans.

Current Account

A component of a country's balance of payments that includes transactions in goods, services, primary income, and secondary income flows between domestic and foreign entities.

Demand

The quantity of a good or service that consumers are willing and able to purchase at different prices.

British Pounds

The currency of the United Kingdom, symbolized as GBP, and commonly referred to as the pound sterling.