Which of the Following Is an Example of a Contingent

question 129

Multiple Choice

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

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

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Definitions:

Previous Stages

The earlier phases or periods in a sequence of events or processes, often referring to development.

Autonomy versus Shame

A stage in Erikson's psychosocial development theory where, during toddlerhood, children develop a sense of personal control and independence, or experience doubt and shame.

Muscular-anal Stage

In psychoanalytic theory, a developmental phase focusing on toilet training where children learn to exert control over bodily functions.

Autonomy versus Doubt

A psychological conflict of early childhood, as theorized by Erik Erikson, where children must develop a sense of personal control and independence, or they may experience shame and doubt in their abilities.