Liabilities & Contingencies: Entries, Disclosures & Treatment

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

A(n) _____ is when the future outcome is most likely to result in a liability.

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1. A(n) _____ is a future sacrifice of economic benefit that arises from a past transaction or event.

2. All of the following are examples of liabilities EXCEPT:

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About This Quiz & Worksheet

This quiz/worksheet set allows you to find out what you know about liability contingency. You will need to know how liabilities are categorized and recorded.

Quiz & Worksheet Goals

In this set of questions, you'll assess your knowledge of:

  • Examples of liabilities
  • Future sacrifices of economic benefit
  • The accounting term for an action likely to result in a future liability

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the material, such as how an accountant records a liability
  • Information recall - access the knowledge you've gained regarding some examples of liabilities
  • Knowledge application - use your knowledge to answer questions about the way in which economic liabilities are categorized

Additional Learning

If you would like to know more about this type of accounting, review the lesson titled Liabilities & Contingencies: Entries, Disclosures & Treatment. This lesson will cover:

  • Debit
  • Credit
  • Types of non-current liabilities
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