Accounting for Contingencies & Environmental Liabilities


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question 1 of 3

A tax refund for a company is a _____ contingency.

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1. Which type of contingency is a lawsuit that might end up making a company have to pay money or potentially lower the value of the company?

2. The future cost of how a company affects its natural surroundings is a (an) _____ contingency.

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About This Quiz & Worksheet

These study assessments will guide you into finding out how much you comprehend about contingencies and environmental liabilities in accounting. Answer questions about specific topics, such as the types of contingency involved in tax refunds and lawsuits.

Quiz & Worksheet Goals

Determine how well you know how to:

  • Name the type of contingency for the cost of a company's impact on its natural surroundings
  • Assess another name for the above contingency
  • Understand the contingency that should be considered by accountants when it is sure to happen

Skills Practiced

Use the study skills that follow:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on contingencies and environmental liabilities
  • Making connections - use understanding of the concept of tax refunds and how they are connected to contingencies
  • Interpreting information - verify that you can read information regarding lawsuits that could force a company to pay out a given amount and interpret it correctly

Additional Learning

View the lesson called Accounting for Contingencies & Environmental Liabilities for more information on this area of study. The lesson will cover the following goals:

  • Define contingency
  • Examine the different types of contingencies
  • Recognize that contingencies can be negative or positive