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Solution Library
Characteristics Of Contingent Liabilities
Question
1. Contingent Liabilities must have the following criteria – select all that apply.
A) The obligation is certain to require payment at some point in the future.
B) The obligation will probably require payment at some point in the future.
C) The obligation is estimable.
D) The obligation will possibly require payment at some point in the future.
E) None of the above
2. Perez Inc. receives a bill from Bench Inc. for $40,000. Bench has credit terms of 3/15, net 45. If Perez Inc. takes advantage of the discount, how much cash does Perez pay Bench?
Summary
These short answer questions belong to Finance. The 1st question is about the characteristics of contingent liabilities. The 2nd question is about discount calculation.
Total Word Count 19
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