Payroll Is an Example of a Contingent Liability for the Employer

question 187

True/False

Payroll is an example of a contingent liability for the employer.

---

Definitions:

Interest

The cost of borrowing money or the income earned from lending money, usually expressed as a percentage of the principal.

Exchange Rates

The value of one currency expressed in terms of another currency, used in international transactions and foreign exchange markets.

Foreign Exchange Loss

A decrease in domestic currency value due to holding foreign currency or financial instruments as they depreciate against the home currency.

Forward Contract

A financial instrument agreement to buy or sell an asset at a predetermined future date and price.