A Contingent Liability Is

question 202

Multiple Choice

A contingent liability is:

• A) An obligation not requiring future payment.
• B) Always of a specific amount.
• C) An obligation arising from a future event.
• D) An obligation arising from the purchase of goods or services on credit.
• E) A potential obligation that depends on a future event arising from a past transaction or event.

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Definitions:

Creative Problem Solver

A person with the ability to develop and combine nontraditional alternatives in order to meet specific needs of the customer.

Buyer's Needs

The requirements, desires, or preferences of a purchaser that motivate them to buy a product or service.

Mutually Beneficial Agreement

A contract or arrangement where all involved parties stand to gain benefits, ensuring cooperation and satisfaction.