Which of the Following Is Both an Estimated Liability and a Contingent

question 91

Multiple Choice

Which of the following is both an estimated liability and a contingent liability?

• A)Cosignature on $500 loan
• B)Current portion of long-term debt
• C)Warranty liability
• D)Liability for dividends

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Definitions:

Estimate

An approximate calculation or judgement of the value, number, quantity, or extent of something.

Income

The financial gain received by an individual or a business, typically calculated on a yearly basis, from work, investments, or other sources.

Education

The systematic process of facilitating learning, acquisition of knowledge, skills, values, beliefs, and habits.

Scatter Diagram

A type of graph used in statistics to visually display and compare two or more variables to identify patterns, relationships, or trends.