What is a contingent liability? Provide two examples of contingencies
What will be an ideal response
A contingent liability is a potential, rather than an actual, liability because it depends on a future event. For a contingent liability to be paid, some event (the contingency) must happen in the future. Two examples of contingencies are lawsuits and co-signing a note for another entity.
You might also like to view...
When applying the retail inventory method, ______ and ______ must be included in the determination of ending inventory at retail.
Fill in the blank(s) with the appropriate word(s).
A major reason that decision making is often not such a rational process is that there are
a. too many stages in decision making for most people to cope with. b. natural biases against diagnosing problems. c. few bounds to human decision-making capability. d. limits to how much information people can process and recall.