Which of the Following Are Contingent Liabilities

question 16

Multiple Choice

Which of the following are contingent liabilities?
I. Borrowings from a financial institution
II. An agreement to act as guarantor for borrowings
III. An unresolved lawsuit brought against a newspaper for defamation

• A) II, III
• B) I, II, III
• C) I, III
• D) I, II

---

Definitions:

GI Tract

The gastrointestinal tract, an organ system responsible for transporting and digesting foodstuffs, absorbing nutrients, and expelling waste.

Mucus

A sticky, slippery substance produced by mucous membranes and glands, used to moisten, protect, and trap particles in the airways, digestive system, and other areas.

Digested First

A methodology or process in which material, typically information or data, is simplified or broken down before further analysis or use.

Carbohydrates

Organic compounds consisting of carbon, hydrogen, and oxygen, serving as a major energy source in the diet of animals and humans.