Answered: 1. All of the following are examples of…

1. All of the following are examples of legal liabilities, except for a. notes payable b. sales tax payable c. sick pay payable (may be taken as time off) d. property taxes payable

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 1BCRQ

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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

1. All of the following are examples of legal liabilities, except for

a. notes payable
b. sales tax payable
c. sick pay payable (may be taken as time off)
d. property taxes payable

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