Which of the Following Would Be Considered a Known Liability

question 74

Multiple Choice

Which of the following would be considered a known liability?

• A) Federal income tax payable
• B) Warranties payable
• C) Pending litigation
• D) Notes payable
• E) Both federal income tax payable and notes payable

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Definitions:

Share Repurchase

An initiative where a corporation repurchases its shares from the market, consequently diminishing the number of available shares and possibly raising the value of the shares still in circulation.

Own Company

A term referring to the possession or control of a company's shares, signifying ownership interest by shareholders or proprietors.

Marketplace

A platform or venue where goods, services, or financial instruments are traded between buyers and sellers.

Stock Dividend

is a dividend payment made in the form of additional shares rather than cash, potentially diluting the value of each share but not the total value.