Which of the Following Would NOT Be Shown as a Contingent

question 16

Multiple Choice

Which of the following would NOT be shown as a contingent liability?

• A) Estimated future cost of providing superannuation for work already carried out by employees
• B) A dispute with the taxation department where legal advice suggests that the company will win the dispute
• C) A company providing a guarantee to a lender for a loan taken out by a subsidiary company where a default on the loan is very unlikely
• D) Company defending a claim for unspecified damages where the amount of the claim cannot be reliably measured

---

Definitions:

Paralysis

The loss of muscle function in part of your body, often resulting in the inability to move that part, typically due to nerve damage.

Neurological Disease

Disorders of the nervous system, affecting the brain, spinal cord, and nerves throughout the body.

Esophageal Cancer

A type of cancer that occurs in the esophagus, the long tube that connects the throat to the stomach, often associated with difficulty swallowing and weight loss.

Regurgitation

The backward flow of blood through a valve in the heart that does not close properly, or the return of undigested food from the esophagus to the mouth.