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What Is a Contingent Liability,and How Does It Relate to the Discounting

question 53

Essay

What is a contingent liability,and how does it relate to the discounting of a note receivable at the bank?


Definitions:

Gas Stations

Facilities that sell fuel and often other goods and services for motor vehicles.

Automobiles

Motor vehicles with four wheels designed to transport people; cars are the most common form of these.

Annual Crop

Plants that are sown, grow, are harvested, and die all in one growing season or year.

Supply Curve

A graphical representation that shows the relationship between the price of a good and the quantity of the good that producers are willing and able to sell.

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