Which of the Following Would NOT Be Shown as a Contingent

question 9

Multiple Choice

Which of the following would NOT be shown as a contingent liability?

• A) estimated future cost of providing superannuation for work already carried out by employees
• B) a dispute with the taxation department where legal advice suggests that the company will win the dispute
• C) a company providing a guarantee to a lender for a loan taken out by a subsidiary company where a default on the loan is very unlikely
• D) company defending a claim for unspecified damages where the amount of the claim cannot be reliably measured.

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Definitions:

Bloodstream

The bloodstream is the system of blood vessels (arteries, veins, and capillaries) through which blood circulates throughout the body, delivering oxygen and nutrients to tissues and removing waste products.

Pituitary

A pea-sized gland located at the base of the brain, often called the "master gland," because it regulates vital body functions and the activity of other glands.

Hypothalamus

An area located beneath the thalamus in the brain responsible for managing the autonomic nervous system and pituitary gland functions, overseeing the regulation of body temperature, hunger, thirst, and various other systems that maintain equilibrium in the body.

Endocrine Glands

Glands of the endocrine system that release hormones directly into the bloodstream to regulate various bodily functions.