A Contingent Liability

question 61

Multiple Choice

A contingent liability:

• A) Is always of a specific amount.
• B) Is a potential obligation that depends on a future event arising from a past transaction or event.
• C) Is an obligation not requiring future payment.
• D) Is an obligation arising from the purchase of goods or services on credit.
• E) Is an obligation arising from a future event.

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Definitions:

Office Space

Physical locations or areas designated for business operations and work of employees in an organization.

Cloud-Based Solutions

Services, storage, and computing resources accessed and managed over the internet, enabling flexibility and scalability for businesses and users.

Electronic Content

Digital material that can be transmitted over the internet or computer networks, like text, images, audio, and video.

Global Firms

Companies that operate on a global scale, conducting business in multiple countries outside of their home country, and are influenced by global strategies and operations.