All of the Following Statements Regarding Uncertainty in Liabilities Are

question 216

Multiple Choice

All of the following statements regarding uncertainty in liabilities are true except:

• A)Liabilities can involve uncertainty in whom to pay.
• B)A company can create a liability with a known amount even when the holder of the note may not be known until the maturity date.
• C)A company can have an obligation of a known amount to a known creditor but not know when it must be paid.
• D)A company only records liabilities when it knows whom to pay,when to pay,and how much to pay.Without all three,a liability cannot be recorded.
• E)A company can be aware of an obligation but not know how much will be required to settle it.

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Definitions:

Defamation Statement

A statement that damages someone's reputation by false or unjustified claims.

Held Liable

Being legally responsible for a wrongful act or omission, which can result in having to pay damages or make restitution.

Prospective Contract

A prospective contract refers to a future agreement that parties intend to enter into, outlining the terms and conditions that will govern their relationship moving forward.

Intentional Interference

An act or practice intending to disrupt or hinder the rights, property, or business interests of another party.