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A Contingent Liability

Question 86

Multiple Choice

A contingent liability:


A) Is an obligation to make a future payment if a certain future event occurs.
B) Arise when a note receivable is discounted without recourse.
C) Is an obligation to make a future payment if an uncertain future event occurs.
D) Is another name for a long term liability.
E) Only arise when accounts receivable are factored.

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