Which of the Following Is an Example of a Contingent

question 102

Multiple Choice

Which of the following is an example of a contingent liability?

• A)A lawsuit pending against a restaurant chain for improper storage of perishable food items.
• B)The liability for future warranty repairs on computers sold during the current period.
• C)A corporation's long-term employment contract with its chief executive officer.
• D)A liability for notes payable with interest included in the face amount.

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Definitions:

Ambilineal Descent

A form of descent in which individuals may inherit some family traits, affiliations, or belongings through either the maternal or paternal line, as selected by the individual, group, or society.

Bilateral Descent

A system of family lineage in which kinship and inheritance are traced through both parents' lines.

Double Descent

A system of kinship where individuals trace their ancestry through both their mother's and father's lines equally.

Lineage

A unilineal kin group descended from a common ancestor or founder who lived four to six generations ago and in which relationships among members can be exactly stated in genealogical terms.