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An analyst performs a color test on a suspected drug sample and reports that a purple color results. This is a/an
Contingent Liability
A potential financial obligation that may occur in the future depending on the outcome of a specific event, not confirmed to exist or be measurable until one or more conditions are fulfilled.
Liability
A financial obligation or debt owed by an individual or company.
Accrual
The accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur.
Onerous Contracts
Contracts in which the unavoidable costs of meeting the obligations exceed the economic benefits expected to be received under it.
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