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IIA-CIA-PART3 · Question #268

Which of the following is an example of a contingent liability that a company should record?

The correct answer is C. The threat of a lawsuit by a competitor. You've hit your session limit · resets 10:20pm (America/New_York)

Question

Which of the following is an example of a contingent liability that a company should record?

Options

  • AA potential assessment of additional income tax.
  • BPossible product warranty costs.
  • CThe threat of a lawsuit by a competitor.
  • DThe remote possibility of a contract breach.

How the community answered

(67 responses)
  • A
    13% (9)
  • B
    3% (2)
  • C
    76% (51)
  • D
    7% (5)

Explanation

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