A contingent liability is:

A. An obligation arising from a future event.
B. An obligation arising from the purchase of goods or services on credit.
C. Always of a specific amount.
D. A potential obligation that depends on a future event arising from a past transaction or event.
E. An obligation not requiring future payment.


Answer: D

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Consider the Japanese market for jetliners as depicted in Figure 6.4. Suppose the lone producer of jetliners in the world is Boeing, which faces a constant marginal cost of $20 million per jetliner. How much consumer surplus will the Japanese airlines who purchase the jetliners earn from their transactions with Boeing?

a. 0 b. $115 million c. $230 million d. $250 million

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(CMA adapted, Jun 96 #15) Refer to the Fabulous Engine Company example. If Fabulous uses a weighted average periodic inventory system, the total cost of the inventory for carburetor 2642J at March 31 is

a. $188,374 b. $194,200 c. $198,301 d. $198,374 e. $199,233

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One advantage that packages provide is that constructs, such as variables, cursors, types, and exceptions, declared in the specification are ____________________.

Fill in the blank(s) with the appropriate word(s).

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Which of the following is false regarding defenses to liability under CERCLA?

a. A defense to liability is that the release of hazardous substances was caused solely by an act of God, such as an earthquake. b. A defense to liability is that the release of hazardous substances was caused solely by an act of war. c. A defense exists for purchasers of brownfields, contaminated sites that are eligible for cleaning and reclaiming with assistance from the Superfund. d. A defense exists if the defendant is less than 50% at fault for the contamination.

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