Examples of Contingent Liabilities Include

question 2

Multiple Choice

Examples of contingent liabilities include

• A)lawsuits requesting the company to pay damages for patent liability or product infringement
• B)product warranty expenses
• C)guarantees of obligations of other parties
• D)liabilities for discounted notes receivable
• E)income tax extensions
• F)both A and B
• G)both B and C
• H)Both C and D

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Definitions:

Shares Outstanding

The total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Mill Rates

The amount of tax payable per dollar of the assessed value of a property, used in calculating local property taxes.

Assessed Value

The dollar value assigned to a property for purposes of taxation by the government.

PST

Provincial Sales Tax, which is a tax levied by individual provinces in Canada.