Potential Liabilities That Depend on Future Events Arising Out of Past

question 28

Multiple Choice

Potential liabilities that depend on future events arising out of past events are called:

• A)actual liabilities.
• B)contingent liabilities.
• C)estimated liabilities.
• D)long-term liabilities.

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Definitions:

Marginal Cost

The financial outlay for producing a subsequent unit of a product or service.

Market Price

The prevailing market rate at which a service or asset can be purchased or sold, influenced by the balance of supply and demand.

Marginal Cost

The additional cost incurred from producing one more unit.

Average Revenue

The revenue received per unit of goods or services sold.