Potential Liabilities That Depend on Future Events Arising Out of Past

question 15

Multiple Choice

Potential liabilities that depend on future events arising out of past events are called:

• A) long-term liabilities
• B) contingent liabilities
• C) actual liabilities
• D) estimated liabilities

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Definitions:

Formal Service

A process in legal proceedings that involves the official delivery of documents to inform a person of legal actions or proceedings against them.

Jurisdictions

The official power to make legal decisions and judgments, often referred to in context of geographical area or scope of legal authority.

Liability

The state of being legally responsible (liable) for something, such as a debt or obligation.

Jury

A group of citizens convened to render an impartial verdict (a finding of fact on a question) officially submitted to them by a court.