Question
Which one of the following would be considered a contingent liability? A) A company estimates that it will probably have to pay $75,000 to the
Which one of the following would be considered a contingent liability?
A) A company estimates that it will probably have to pay $75,000 to the EPA for a chemical spill.
B) A company owes $35,000 on inventories purchased on credit.
C) A company has access to a line of credit with a bank in the amount of $120,000.
D) A company believes that it is reasonably possible it will lose a lawsuit and damages could be $100,000.
E) None of the above
explain logic
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Active Auditing A Practical Guide To Lean And Agile Auditing
Authors: Prescott Coleman, Sandy Kasahara
1st Edition
1092839305, 978-1092839303
