Which One of the Following Items Would Be Most Likely

question 64

Multiple Choice

Which one of the following items would be most likely considered a contingent liability for Cannonbar,a grocery store chain?

• A)A patron slipped on a grape and broke her neck during the period under audit,no claim has been made against Cannonbar.
• B)The IRS has disagreed with deductions claimed on Cannonbar's previous period return.
• C)Management believes that a lawsuit that was filed during the period under audit against Cannonbar will be settled.
• D)Cannonbar has a note payable with a bank that was collateralized by all of the company's receivables in the period under audit.

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Definitions:

Pelvic Inflammatory Disease

An infection of the female reproductive organs, often caused by sexually transmitted bacteria.

Boardlike Abdominal

Describes a condition where the abdomen feels extremely hard and rigid, often a sign of severe underlying conditions such as peritonitis.

Uterine Fibroids

Noncancerous growths of the uterus that often appear during childbearing years.

Uterine Prolapse

A condition where the uterus sags or slips from its normal position into the vaginal canal, often due to weakened pelvic floor muscles.