Which of the Following Statements Best Describes a Contingent Liability

question 35

Multiple Choice

Which of the following statements best describes a contingent liability? A contingent liability is a:

• A)liability,the amount of which is known and which definitely must be paid.
• B)potential liability that has arisen because of a past transaction or event,but its ultimate outcome will not be known until a future event occurs or fails to occur.
• C)liability that will only be incurred if a particular future event takes place.
• D)potential liability that will be incurred if a natural disaster happens.

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Definitions:

Meditation

A practice involving focus, relaxation, and mindfulness to achieve mental clarity and emotional calmness.

Hypnotist

A person skilled in the practice of hypnosis, using it to induce a state of focused attention, decreased peripheral awareness, and increased suggestibility.

Narcolepsy

Narcolepsy is a chronic sleep disorder characterized by overwhelming daytime drowsiness and sudden attacks of sleep, often leading to significant disruptions in daily life.

Hallucinates

The experience of sensing things that are not present in the external environment as if they are real, often a symptom in psychological disorders.