Which of the Following Is TRUE of a Contingent Liability

question 217

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:

Reciprocity

A social principle where interactions are based on mutual exchange, influencing the dynamics of social relationships and transactions.

Give-And-Take

A principle of mutual exchange, compromise, or negotiation, where individuals participate in reciprocal giving and receiving to reach a mutually beneficial outcome.

Experience Sampling Method

A research technique that collects data on participants' feelings, thoughts, and behaviors in real time or within close proximity to experience.

Electronic Pagers

Small communication devices used to receive messages or alerts, popular before the widespread use of mobile phones.