Which of the Following Topics Involves a Contingent Liability

question 106

Multiple Choice

Which of the following topics involves a contingent liability?

• A)Installment accounts receivable
• B)A discounted note receivable
• C)Securitization
• D)Credit card sales

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Definitions:

Chemical Energy

A form of potential energy stored in chemical bonds between atoms and molecules, which can be released during chemical reactions.

Autotrophs

Organisms that produce their own food from inorganic substances using light or chemical energy, such as plants and some bacteria.

Pigment

Substances that give color to living organisms, such as chlorophyll in plants or melanin in human skin.

Light

Light is electromagnetic radiation within a portion of the electromagnetic spectrum that can be perceived by the human eye, responsible for the sense of sight.