A Contingent Liability

question 149

Multiple Choice

A contingent liability:

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

Recognize the importance of regular brake fluid maintenance due to its hygroscopic nature.

Comprehend the role and significance of brake pedal position sensor or brake light switch.

Identify the guidelines and steps for manual and automated bleeding techniques.

Understand the impact of contamination and incorrect materials on brake system performance and maintenance.

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Definitions:

Debit Balance

A situation in an account where the sum of debits exceeds the sum of credits, indicating assets or expenses.

Contra Account

An account used in financial reporting to reduce the value of a related account, creating a net balance that reflects the true value of an asset or revenue.

Carrying Value

The amount at which an asset is recognized on the balance sheet, calculated as the asset's cost minus depreciation and amortization.

Market Price

The market price is the current value at which an asset or service can be bought or sold in the open market, influenced by supply and demand dynamics.