Liabilities That Might Arise from Which of the Following Probably

question 131

Multiple Choice

Liabilities that might arise from which of the following probably would be disclosed only in the notes to the financial statements?

• A) Possible warranty claims
• B) Guarantees of the debt of other companies
• C) Possible bankruptcy of an important customer
• D) Estimated income taxes for the current year

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Definitions:

Legal Evidence

Information and documents presented in legal proceedings for the purpose of proving or disproving a particular fact or assumption.

Car Sharing

A model of car rental where individuals rent cars for short periods of time, often by the hour, facilitating shared vehicle use among multiple users.

Software Development

The process of conceiving, specifying, designing, programming, documenting, testing, and bug fixing involved in creating and maintaining applications, frameworks, or other software components.

Information Technology

refers to the use of computers, networking, software, and other electronic devices to manage and process data.