Contingent Liabilities: Definition & Examples


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question 1 of 3

Which of the following statements about liabilities is TRUE?

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1. Which of the following statements offers the BEST explanation of contingent liabilities?

2. How can product recalls be a contingent liability?

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About This Quiz & Worksheet

This quiz and worksheet can help you assess your knowledge of the different types of contingent liabilities. In order to pass the quiz, you will need to be able to define liabilities.

Quiz & Worksheet Goals

This quiz and worksheet can help you review:

  • Why product recalls can be considered contingent liabilities
  • Definition of liabilities
  • How changes in legislation can be a contingent liability
  • Why pending lawsuits can be considered a contingent liability

Skills Practiced

This quiz and worksheet can help you practice the following skills:

  • Information recall - access the knowledge you have gained regarding definition of liabilities
  • Knowledge application - use your knowledge to answer questions about the different types of contingent liabilities
  • Reading comprehension - ensure that you draw the most important information from the related liability lesson

Additional Learning

To learn more about contingent liabilities, review the lesson called Contingent Liabilities: Definition & Examples. This lesson will help you:

  • Understand what contingent liabilities are
  • Identify the different types of contingent liabilities
  • Determine why it's important to accurately estimate liabilities that have a high probability of occurring