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:

Develop

The process of growth or progression through stages, referring to individuals, organizations, or technologies.

Postpartum Psychosis

A rare, severe mental illness that can affect new mothers, characterized by hallucinations, delusions, and mood swings.

Harm Offspring

Engaging in behaviors or actions that could physically, emotionally, or psychologically damage one's children.

Andrea Yates

An American woman known for her case related to postpartum psychosis, where she drowned her five children.