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Kay [80]
3 years ago
13

A contingent liability is:Multiple ChoiceAlways of a specific amount.An obligation arising from the purchase of goods or service

s on credit.An obligation arising from a future event.A potential obligation that depends on a future event arising from a past transaction or event.An obligation not requiring future payment.
Business
1 answer:
Ainat [17]3 years ago
5 0

Answer:

A potential obligation that depends on a future event arising from a past transaction or event

Explanation:

A contingent liability is a potential obligation that depends on a future event arising from a past transaction or event.

Contingent liability are usually recorded in the financial statements if :

A. The contingency is likely to occur

B. The amount can be estimated.

I hope my answer helps you

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Answer:

d. have the right to receive dividends only in the years the board of directors declares dividends.

Explanation:

Preferred shareholders<u> have the right to receive dividends in the priority to the common shareholders of the company unit. </u> In other words, if there is sufficient funds with the company to declare dividends both to preferred and common shareholders, then in that case, preferred shareholders will be entitled the right to receive dividends first, and remaining amount will be distributed to common shareholders. Only that, they have this right only when the board of directors declares dividends.

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3 years ago
Charles wants to start a décor business and takes a loan of $35,000 from the bank to set up the business. Once the business is u
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Answer:

Sole Proprietorship

Explanation:

Charles is planning to start a sole proprietorship business. It is the most common form of business ownership.

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5 0
3 years ago
A stock has a required return of 11%; the risk-free rate is 7%; and the market risk premium is 4%.
kotegsom [21]

Answer:

The Beta is 1

The required return increases to 13%

Explanation:

The formula for required return is given below:

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risk-free rate of return=7%

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4%=beta*4%

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If the market risk premium increased to 6%,required return is calculated thus:

required return=7%+1(6%)

required return =13%

This implies that the riskier the stock, the higher the market risk premium, the higher the required return to investors.

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Answer:

T.

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Explanation:

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