Multiple Choice
Which of the following is an example of a contingent liability?
A) A corporate long-term employment contract with the chief executive officer.
B) A lawsuit pending against a restaurant chain for improper preparation of food.
C) A liability for notes payable with interest included in the face amount.
D) The liability for future warranty repairs on computers sold during the current period.
Correct Answer:
Verified
Correct Answer:
Verified
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