Which of the Following May NOT Be Accrued as a Contingent

question 13

Multiple Choice

Which of the following may NOT be accrued as a contingent liability?

• A) threat of expropriation of assets
• B) pending or threatened litigation
• C) guarantees of indebtedness of other
• D) potential income tax refunds

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Definitions:

Sovereign Immunity

A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.

U.K.'s Laws

The legal rules and regulations that are governing within the United Kingdom, encompassing statutes, common law, and legal precedents.

Principle of Comity

A legal doctrine that suggests courts within one jurisdiction will give effect to the laws and judicial decisions of another jurisdiction, based on mutual respect rather than obligation.

Agency Relationships

A legal relationship in which one party (the agent) acts on behalf of another party (the principal) in a business transaction.