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.

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Definitions:

Reimburses

Refers to the act of compensating someone for an expense they have incurred.

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