Which of the Following Is a Contingent Liability

question 7

Multiple Choice

Which of the following is a contingent liability?

• A)Note payable with interest included in face amount
• B)Excise tax payable
• C)Property tax liability
• D)Disputed additional tax assessment

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Definitions:

Express Ratification

The explicit approval or confirmation of an act or agreement, usually after the fact, making it officially valid.

Mental Illness

A broad range of mental health conditions that affect mood, thinking, and behavior, often requiring medical diagnosis and treatment.

Legal Capacity

The ability of an individual or entity to enter into legally binding contracts and be sued or sue others.

Discharged

The completion, termination, or fulfillment of an obligation, debt, or contract.