Which of the Following Is an Example of a Contingent

question 166

Multiple Choice

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

• A) A liability for notes payable with interest included in the face amount.
• B) The liability for future warranty repairs on computers sold during the current period.
• C) A lawsuit pending against a restaurant chain for improper preparation of food.
• D) A corporate long-term employment contract with the chief executive officer.

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