The Key Characteristic of Contingent Liabilities Is

question 17

Multiple Choice

The key characteristic of contingent liabilities is:

• A) the timing of the future sacrifice of economic benefits is uncertain.
• B) the liability will be confirmed only by the occurrence or non-occurrence of a future event not completely within the control of an entity.
• C) a legal dispute must exist at balance date.
• D) the liability does not exist beyond a reasonable doubt.

---

Definitions:

Operations-Related Tasks

Tasks that pertain to the day-to-day running and managing of a business’s operational activities.

Hard Rock Café

An international chain of theme restaurants known for its collection of rock-and-roll memorabilia.

Intangible Product

A product, service, or offering that cannot be physically touched or seen, but can be purchased and used, such as digital goods or services.

Just-In-Time (JIT) Shipments

A logistics strategy where materials and products are delivered exactly when needed for production or sale, minimizing inventory levels and storage costs.