Which of the Following Is a Required Condition for a Contingent

question 74

Multiple Choice

Which of the following is a required condition for a contingent liability to exist?

• A)There is a potential liability to an employee of the client.
• B)The amount of the future payment is known.
• C)The liability resulted from known events.
• D)The outcome has been resolved by a current event.

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Definitions:

Production Overruns

Occurrences when more units of a product are produced than were originally ordered or forecasted, often leading to excess inventory.

Service Retailer

A business that sells services rather than physical goods, providing intangible products to customers.

Nail Salon

A specialized beauty salon that provides nail care services such as manicures, pedicures, and nail enhancements.

Extreme-value Retailers

Stores that specialize in offering a wide range of products at exceptionally low prices, targeting cost-conscious consumers.