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.

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Definitions:

CVA

Cerebrovascular Accident (CVA), commonly known as a stroke, is a medical condition that occurs when the blood supply to part of the brain is interrupted or reduced, preventing brain tissue from getting oxygen and nutrients.

Paralysis

The loss or impairment of voluntary movement in a body part, often due to nerve damage or a neurological condition.

Chest Pain

A symptom characterized by discomfort or pain in the chest region, which can indicate a variety of health issues ranging from minor to severe.

Insulin Shock

A severe hypoglycemic condition resulting from an overdose of insulin, leading to confusion, unconsciousness, or even coma.