Which of the following is NOT an example of a loss contingency?
A)Payment of income taxes
B)Income tax disputes
C)Guarantees of debt of others
D)Threat of expropriation of assets

Question

Quizplus · Accepted Answer

Payment of income taxes is not a loss contingency as it is a certain and unavoidable obligation for businesses and individuals. Loss contingencies refer to potential future losses that depend on uncertain future events. Income tax disputes, guarantees of debt of others, and threat of expropriation of assets are examples of loss contingencies as they involve potential future losses that may or may not occur depending on future events.

Which of the Following Is NOT an Example of a Loss