Which of the Following Is True of a Contingent Liability

question 146

Multiple Choice

Which of the following is true of a contingent liability?

• A)It is a potential liability that depends on a future event.
• B)It is an actual liability that is difficult to estimate.
• C)It is an actual liability that depends on a past event.
• D)It is a liability resulting from a lawsuit settled in court.

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Definitions:

Subsidy

A financial aid or support extended by the government to an economic sector, business, or individual, often aimed at promoting economic and social policies.

Elasticity of Demand

An analysis of consumer demand's elasticity in relation to the pricing of a commodity.

Subsidy

Financial support extended by the government to an economic sector (or institution, business, or individual) with the aim of promoting economic and social policy.

Highly Elastic

Refers to a strong responsiveness of the quantity demanded or supplied of a good to a change in its price.