Match each of the following terms with the appropriate definitions.
-A potential obligation that depends on a future event arising from a past transaction.
A)Long-term liability
B)Warranty
C)FUTA taxes
D)FICA taxes
E)Contingent liability
F)Net pay
G)Withholding allowance
H)Estimated liability
I)Merit rating
J)Wage bracket withholding table

Question

Quizplus · Accepted Answer

A contingent liability is a potential financial obligation that may arise in the future depending on the outcome of a specific event. It is not guaranteed to occur but is possible due to past transactions or events.

Match Each of the Following Terms with the Appropriate Definitions