A Contingent Liability

question 162

Multiple Choice

A contingent liability

• A)is a potential liability that depends on a future event arising out of a past transaction.
• B)is a liability that can always be calculated with great precision (i.e.,always has a definite amount).
• C)does not include product safety lawsuits.
• D)does not include liabilities relating to environmental issues such as toxic landfills.
• E)is not of interest to readers of financial statements.

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Definitions:

Magnetic Fields

A vector field that describes the magnetic influence on moving electric charges, electric currents, and magnetic materials.

Pineal Gland

A small, pea-shaped gland in the brain that produces melatonin, a hormone that regulates sleep-wake cycles.

Insulin

A substance secreted by the pancreas that controls blood glucose levels by promoting glucose absorption into the body's tissues.

Resting Potential

The electrical potential of a neuron or other excitable cell relative to its surroundings when not stimulated or involved in passage of an impulse.