A Contingent Liability Is

question 250

Multiple Choice

A contingent liability is:

• A)always a specific amount.
• B)an obligation arising from the purchase of goods or services on credit.
• C)an obligation not requiring a future payment.
• D)a potential obligation that depends on a future event.

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Definitions:

Apples

Edible fruits from the apple tree, known for their sweet taste and crunchy texture, and used in a variety of culinary dishes.

Bananas

A type of fruit that is elongated, curved, and covered with a peel, typically yellow when ripe, and consumed as a sweet source of energy.

Perfect Substitute

Goods that can be used in place of one another with no loss of utility for the consumer, indicating a one-to-one substitutability.

Utility Function

A mathematical representation that assigns a level of utility or satisfaction to different bundles of goods, allowing preferences to be compared quantitatively.