Which of the Following Would NOT Be Shown as a Contingent

question 6

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) A company defending a claim for unspecified damages where the amount of the claim cannot be reliably measured

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Definitions:

Social Responsibility

The obligation of an entity, be it an organization or individual, to act for the benefit of society at large.

Legitimate Profit

Earnings obtained through legal and ethical business practices, reflecting a fair exchange of value.

Better Place

Can refer to initiatives or efforts aimed at improving conditions in a particular area or community, leading to a more positive and sustainable environment.

Whistle-Blowing

Whistle-blowing involves reporting unethical, illegal, or harmful practices by individuals or organizations, typically to protect public interest.