Why Are Contingent Liabilities Considered Unique and Different from All

question 147

Multiple Choice

Why are contingent liabilities considered unique and different from all other liabilities?

• A)Whether or not a company has an obligation depends on the result of a future event.
• B)Whether or not a company has an obligation depends on the result of a past event.
• C)The company knows the amount of the obligation.
• D)Both B and C are unique to contingent liabilities.

---

Definitions:

Social Sciences

The scientific study of human society and social relationships, encompassing disciplines like sociology, psychology, and anthropology.

Research Funding

Financial support provided by governments, private entities, or individuals to conduct research projects and investigations.

Feigned Scarcity

An artificial limitation of available products or services to incite demand through a sense of urgency.

Social Influence Technique

Strategies or methods used to change or influence individual or group behaviors, beliefs, or attitudes, utilizing principles of persuasion, conformity, and social norms.