Which of the following is not an example of a loss contingency?
A) guarantees of obligations of others
B) income tax disputes under appeal
C) the client's claim against another for patent infringement
D) secondary endorsements
E) product warranties

Question

Quizplus · Accepted Answer

A loss contingency is a potential loss that may occur in the future depending on the outcome of a past event. Guarantees of obligations of others, income tax disputes under appeal, secondary endorsements, and product warranties are all examples of loss contingencies because they involve potential future financial liabilities that depend on uncertain future events. However, a client's claim against another for patent infringement represents a potential asset or gain, not a loss, if the claim is successful.

Which of the Following Is Not an Example of a Loss