Examples of Contingent Assets Include All of the Following Except

question 4

Multiple Choice

Examples of contingent assets include all of the following except:

• A)Unrealized gain on the sale of investments.
• B)Pending lawsuit with a favorable outcome.
• C)Tax refund disputed by the government but with a possible favorable outcome.
• D)Promise of land to be donated by city as an enticement to move manufacturing facilities.

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, used in the evaluation of investment opportunities.

Cash Flow Stream

A series of cash inflows and outflows over a period of time, often used in financial models to determine investment viability or project returns.

Rate of Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost, indicating profitability.

Perpetuity

A series of payments of a fixed amount that last indefinitely.