Which of the Following Would Best Describe a Contingent Liability

question 18

Multiple Choice

Which of the following would best describe a contingent liability?

• A)an obligation to transfer services instead of cash to settle a liability
• B)an obligation where the costs will be covered by insurance
• C)an obligation with a high degree of uncertainty about the amount or timing of the payment
• D)an obligation with a low degree of uncertainty about the amount or timing of the payment

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Definitions:

Law of Supply

An economic principle stating that as the price of a good or service increases, the quantity supplied of that good or service also increases, all else being equal.

Price-Elasticity

A measure of the responsiveness of demand or supply of a good or service to changes in its price.

Supply

The total amount of a product or service that is available for purchase within a market.

Glass Company

A business that specializes in the production and processing of glass products.