Debt Guarantees Are

question 65

Multiple Choice

Debt guarantees are:

• A) A bad business practice.
• B) Considered to be current liabilities.
• C) Recorded as liabilities even though it is highly unlikely that the original debtor will default.
• D) Considered to be contingent liabilities.
• E) Never disclosed in the financial statements.

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Definitions:

Margin of Error

The amount of error allowed in the results of a statistical survey, expressed as a percentage and indicating the confidence in the results.

Mean Weight

The average mass of objects or individuals, calculated by summing their weights and dividing by the number of objects or individuals.

Sample

A subset of individuals, items, or data taken from a larger population, used to make inferences about the whole population.

Confidence Interval

A span of numbers obtained from sampled data which probably encompasses the value of a not yet known parameter of the overall population.