Which of the Following Statements Best Describes a Contingent Liability

question 144

Multiple Choice

Which of the following statements best describes a contingent liability?

• A)The amount of a contingent liability is known and will definitely have to be paid in the future.
• B)A contingent liability is a potential liability that has arisen because of a past transaction or event,but its ultimate outcome will not be known until a future event occurs or fails to occur.
• C)A contingent liability will only be incurred if a particular future event takes place.
• D)A contingent liability is a potential liability that will be incurred if a natural disaster happens.

---

Definitions:

Perceived Competence

An individual's belief in their own ability to perform tasks effectively and successfully.

Feedback Self-efficacy

The belief in one’s capacity to accept and utilize feedback for improvement and learning.

Supportive Communication

Communication that is empathetic, understanding, and encouraging, aimed at providing emotional support to others.

Defensiveness

A psychological reaction that occurs when an individual perceives a threat or criticism, often leading to protective behavior or communication.