Match the Following Items with the Appropriate Designation (Estimated Liability

question 219

Multiple Choice

Match the following items with the appropriate designation (Estimated liability, Contingent liability, or Known liability) .
-Warranty on products sold this year

• A)Contingent liability
• B)Estimated liability
• C)Known liability

---

Definitions:

Financial Transactions

Activities involving the exchange of money or monetary value between individuals, organizations, or financial institutions.

Corporate Profits

The financial surplus gained by a company after all expenses and taxes have been deducted from total revenue.

Economic Environment

The combination of external economic factors that impact the operation of businesses, such as inflation, employment rates, and GDP growth.

Bankruptcy Codes

A set of federal laws outlined in the United States that govern bankruptcy proceedings and provide the legal framework for dealing with financial insolvency.