Three Conditions Are Required for a Contingent Liability to Exist

question 94

Multiple Choice

Three conditions are required for a contingent liability to exist. Which of the following is not one of those conditions?

• A) There is a potential future payment to an outside party or the impairment of an asset that resulted from an existing condition.
• B) The outcome must be resolved by a third-party.
• C) There is uncertainty about the amount of the future payment or impairment.
• D) The outcome will be resolved by some future event or events.

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Definitions:

Harvard University

A prestigious Ivy League university located in Cambridge, Massachusetts, known for its scholarly research, diverse programs, and influence in various fields.

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A therapeutic approach and theory of psychology developed by Sigmund Freud, focusing on unconscious mental processes and conflicts.

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Events and interactions during the early years of life that significantly influence an individual's development, personality, and behavior patterns.

Phineas Gage

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