A Contingent Liability

question 64

Multiple Choice

A contingent liability:

• A) Is a potential obligation that depends on a future event arising out of a past transaction.
• B) Is an obligation not requiring immediate payment.
• C) Is a liability of a specific amount.
• D) Is an obligation arising from the purchase of goods or services on credit.
• E) None of these answers is correct.

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Definitions:

Jargon

Specialized language used by a particular profession or group.

Bypassing

A communication barrier where the same words or phrases are interpreted differently by different people, leading to misunderstandings.

Static Evaluation

The tendency to view people or situations as unchanging despite evidence to the contrary.

Polarization

The division into two sharply contrasting groups or sets of opinions or beliefs.