A Contingent Liability Is One for Which

question 12

Multiple Choice

A contingent liability is one for which:

• A)the liability definition is not satisfied, as there is not a present obligation due to the existence of a contingency the outcome of which is not wholly within the company's control
• B)the company does not presently have sufficient liquid resources to discharge
• C)the liability definition is satisfied but not the liability recognition criteria.
• D)Both A and C but not B

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Definitions:

Auditory

Relating to the sense of hearing or the system within the body that allows for hearing.

Bodily Kinesthetic

Relates to the intelligence that involves the use of the body to solve problems or create products, expressing oneself through physical means.

Endorphins

Neurotransmitters produced in the brain that act as natural painkillers and produce a feeling of well-being or euphoria.

Acrostic

A made-up sentence in which the first letter of each word stands for something.